Reply
Contributor
Posts: 111
Registered: ‎02-05-2012
0

Utilization question

[ Edited ]
Once you get your utilization to under 9%, will your score change if you go under say 5%? or does it remain the same after a certain point? TIA

Starting Score: 595 2/5/12
Current Score: 650 midscore lender pull 7/24/12
Goal Score: 640

Take the FICO Fitness Challenge
New Contributor
Posts: 61
Registered: ‎01-27-2012
0

Re: Utilization question

Under all the posts Ive read on here it varies for each person. The best advice I can give is to play around with the percentages month to month and see what gives you the best score jump. Im currently playing with this as well. 


Starting Score: EQ 489 1/2012 TU 493 1/2012
Current Score: EQ 547 5/2012 TU 562 5/2012
Goal Score: 700


Take the FICO Fitness Challenge
Senior Contributor
Posts: 4,191
Registered: ‎03-24-2008
0

Re: Utilization question

Good answer wmcodywilson.

 

I would also like to add. If you have 3 CC's, have 2 of them report $0 and the last CC to report about 9%.Some say that works the best.

FICO's May 2015 EQ764 ~~Live below your means and always keep an emergency fund -Love Everybody ~ Big Kenny ~ Big and Rich ~~~~~Credit Scoring 101 - Common Abbreviations - Freq Req Threads - Free Credit Reports - What Steps Do I Take?DV? PFD?
Contributor
Posts: 111
Registered: ‎02-05-2012
0

Re: Utilization question

Thanks for the responses. I have 3 and I was at 8% and carrying a $20 balance on 1, $0 on the other and a $60 balance on the other. I paid down the $60 cc to $20 and was wondering if it will matter. By the end of this month I will carry a balance on just 1 cc and see how it helps. Do I need to charge $20a month on the other cards then pay before the statement to $0, or am I ok just not using them at all?

Starting Score: 595 2/5/12
Current Score: 650 midscore lender pull 7/24/12
Goal Score: 640

Take the FICO Fitness Challenge
Moderator
Posts: 17,017
Registered: ‎07-14-2009
0

Re: Utilization question


MissKay wrote:
Thanks for the responses. I have 3 and I was at 8% and carrying a $20 balance on 1, $0 on the other and a $60 balance on the other. I paid down the $60 cc to $20 and was wondering if it will matter. By the end of this month I will carry a balance on just 1 cc and see how it helps. Do I need to charge $20a month on the other cards then pay before the statement to $0, or am I ok just not using them at all?

Everyone's situation is different and there is no one size fits all approach to this but what seems to work well for most people is to have only one of their cards report a small (<9% of it's credit limit) balance each month and then pay in full before the due date. You can use it as much as you want during the month but what's important is the reported balance because for most cards whatever is reported on the monthly statement is what is used to calculate utilization for the month.

You might have to play around with the percentages for a few months to see what works best for you. Some people say that 1-3% utilization helps the most. For others it might be 5-9%. As I said it's not one size fits all.

On any other cards always try and have them report a zero balance each month. That doesn't mean you can't use them just make sure that the desired zero balance on these accounts is achieved several days before their statements post.

Along with individual and overall utilization, FICO also scores the number of all types of accounts reporting a balance.at any one time Making sure less than half of all your accounts report a balance helps most people.

Now this approach really isn't necessary if you're not looking to apply for any credit in the near future or unless you are trying to tweak your score for maximum effect but some folks do this as a hobby just to see how high they can get their score.




Valued Contributor
Posts: 2,661
Registered: ‎04-25-2011
0

Re: Utilization question


MarineVietVet wrote:

MissKay wrote:
Thanks for the responses. I have 3 and I was at 8% and carrying a $20 balance on 1, $0 on the other and a $60 balance on the other. I paid down the $60 cc to $20 and was wondering if it will matter. By the end of this month I will carry a balance on just 1 cc and see how it helps. Do I need to charge $20a month on the other cards then pay before the statement to $0, or am I ok just not using them at all?

Everyone's situation is different and there is no one size fits all approach to this but what seems to work well for most people is to have only one of their cards report a small (<9% of it's credit limit) balance each month and then pay in full before the due date. You can use it as much as you want during the month but what's important is the reported balance because for most cards whatever is reported on the monthly statement is what is used to calculate utilization for the month.

You might have to play around with the percentages for a few months to see what works best for you. Some people say that 1-3% utilization helps the most. For others it might be 5-9%. As I said it's not one size fits all.

On any other cards always try and have them report a zero balance each month. That doesn't mean you can't use them just make sure that the desired zero balance on these accounts is achieved several days before their statements post.

Along with individual and overall utilization, FICO also scores the number of all types of accounts reporting a balance.at any one time Making sure less than half of all your accounts report a balance helps most people.

Now this approach really isn't necessary if you're not looking to apply for any credit in the near future or unless you are trying to tweak your score for maximum effect but some folks do this as a hobby just to see how high they can get their score.





+1

 

I saw my best scores when I had all of mine reporting zero with the exception of one reporting under 9 percent..

 

-scott

Starting FICO Score: 10/10: TU 498 | EQ: 502 Current FICO Score(lender pull): 09/14: TU: 784 | EQ: 752 | EX: 784
Collections Removed: Hunter Warfield, CBE Group, Merchants Credit Guide, EOS-CCA, Enhanced Recovery, Portfolio Recovery, UCB, American Collection Company, Medical Business Bureau, Jefferson Capital, Credit Portfolio Associates, FCO, LVNV, Convergent, Armor Systems
Other Negative Entries Removed:Plains Commerce CO, HSBC CO, 2008 Judgment Santander Reposession


Positive Accounts:10/10: 0 | 07/12: 6 | Mortgage Closed 5/12, Macy's AMEX $13900, Citi/Home Depot $8500, Capital One Cash Rewards $3500, BOA $7500 Total Utilization: 3%. AAoA: 2yr, 9mth. INQS: 1 TU, 1 EQ, 3 EX
Advertiser Disclosure: The listings that appear on myFICO are from companies from which myFICO receives compensation, which may impact how and where products appear on myFICO (including, for example, the order in which they appear). myFICO does not review or include all companies or all available products.
† Credit cards for FICO Score ranges: The score ranges are guidelines based on actual applicant approvals and having a FICO Score in a particular range does not guarantee you will be approved for credit cards recommended in that range.

Copyright ©2001-2015 Fair Isaac Corporation. All rights reserved.   | Terms of Use | Privacy Policy | Sitemap

IMPORTANT INFORMATION: All FICO® Score products made available on myFICO.com include a FICO® Score 8, along with additional FICO® Score versions. Your lender or insurer may use a different FICO® Score than the versions you receive from myFICO, or another type of credit score altogether. Learn more

FICO, myFICO, Score Watch, The score lenders use, and The Score That Matters are trademarks or registered trademarks of Fair Isaac Corporation. Equifax Credit Report is a trademark of Equifax, Inc. and its affiliated companies. Many factors affect your FICO Score and the interest rates you may receive. Fair Isaac is not a credit repair organization as defined under federal or state law, including the Credit Repair Organizations Act. Fair Isaac does not provide "credit repair" services or advice or assistance regarding "rebuilding" or "improving" your credit record, credit history or credit rating. FTC's website on credit.