Utilization

[ktm214]

I need to see if I understand this. If I pay off my CO First Premier, that will lower my utilization thus perhaps having a positive affect on my credit score? Thank you

[llecs]

Most usually. Is a CL reported?

[sphinx313]

Potentially...unless you're like me and your 110% utilization is "not as bad" as the other things on your credit report. I paid off $1,400 worth of utilization and didn't even get 20 points. YMMV obviously.

[RobertEG]

Unless you cease using the line of credit.  It costs time and $$ to maintain active accounts.

Little or no usage might lead to account closure.

On the flip side, regardless of FICO scoring impacts of very high util, which can be overcome simply by paying the util down, the residual impact may be a reduction in your CL, thus attempting to reduce their future risk.

In my opinion, the more significant impact of usage history is how the creditor might view it in their future decision making.  High past util may be quickly erased in FICO scoring, but may have other unwanted impact.

[sphinx313]

Very, very true. Robert, (fabulous name by the way if I may say so myself as a Robert) would you happen to know if the high utilization issue plays into Secured Cards as well? For instance, a graduating type of card may not consider it if your utilization was high?