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1% vs 9% utilization

Established Contributor

1% vs 9% utilization

I want to apply for BCE soon and I was worried that my current 1% utilization from $20 on my 2500 limit Discover might make me look unprofitable to amex. Would it be in my favor to raise utilization to 9%? I really hate spending so if it doesn't make a difference then I plan to keep it at 1%. Otherwise I have a plan to get my spend up to 9% charging a a card then getting a refund.


Starting Score: Ex08-732,Eq08-713,Tu08-717
Current Score:Ex08-765,Eq08-749,Tu08-741
Goal Score: Ex08-760,Eq08-760,Tu08-760


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11 REPLIES
Valued Contributor

Re: 1% vs 9% utilization

Don't go out of your way to charge something you wouldn't charge otherwise. If it means anything, my utilization was under 1% when I applied for my AMEX card, and they gave my 150% of my highest limit at that time.

Message 2 of 12
Established Contributor

Re: 1% vs 9% utilization

The only thing the computer will see when reviewing the app is a non-zero number less than 9% - whether that's 1%, 5%, or 8.99%, no difference at all

Message 3 of 12
Established Contributor

Re: 1% vs 9% utilization

Also I just wanted to make sure $20 counts as 1% of $2500 for scoring purposes. 1% of $2500 would technically be $25 but I can assume $20 rounds up right?


Starting Score: Ex08-732,Eq08-713,Tu08-717
Current Score:Ex08-765,Eq08-749,Tu08-741
Goal Score: Ex08-760,Eq08-760,Tu08-760


Take the myFICO Fitness Challenge
Message 4 of 12
Established Contributor

Re: 1% vs 9% utilization


Subexistence wrote:

Also I just wanted to make sure $20 counts as 1% of $2500 for scoring purposes. 1% of $2500 would technically be $25 but I can assume $20 rounds up right?


Good enough.  $2 would be enough to avoid a FICO point  loss due to zero accounts reporting a balance.  More than $0 reporting on one account is all you need..

Message 5 of 12
Valued Contributor

Re: 1% vs 9% utilization

I'd leave at least a $5 balance to ensure that Discover doesn't decide to forgive the bill and report zero. If you're aiming for 1%, $10 to $25 sounds good to me.

Message 6 of 12
Community Leader
Senior Contributor

Re: 1% vs 9% utilization

As the other folks are saying, you really have a very wide range that will all be equivalent. 

 

The only thing that hasn't been mentioned is the importance of making sure that your other card is reporting $0.  That shouldn't be difficult, since if memory serves you hate that particular card -- I am pretty sure it has been $0 for the last couple months.

Message 7 of 12
Highlighted
Established Contributor

Re: 1% vs 9% utilization

CGID, you got that very right.

Starting Score: Ex08-732,Eq08-713,Tu08-717
Current Score:Ex08-765,Eq08-749,Tu08-741
Goal Score: Ex08-760,Eq08-760,Tu08-760


Take the myFICO Fitness Challenge
Message 8 of 12
Super Contributor

Re: 1% vs 9% utilization


Subexistence wrote:

I want to apply for BCE soon and I was worried that my current 1% utilization from $20 on my 2500 limit Discover might make me look unprofitable to amex. Would it be in my favor to raise utilization to 9%? I really hate spending so if it doesn't make a difference then I plan to keep it at 1%. Otherwise I have a plan to get my spend up to 9% charging a a card then getting a refund.


If you used the Discover card in a typical month, and did not pay the current month charges down before this current statement date (understanding that you pay in full the prior month statement balance to avoid triggering interest) what would your reported statement balance be for the Discover card?

High Bal Jan 2009 $116k on $146k limits 80% Util.
Oct 2014 $46k on $127k 36% util EQ 722 TU 727 EX 727 FICO Simulator 2014: $20k balances = 812 FICO.
March 2017 $20k on $300k 6% util EQ 824 TU 824 EX 815

5 / 24 counting down to 1 Nov 2017... wait I guess it's 18 Dec 2017 to get 4/24
Message 9 of 12
Established Contributor

Re: 1% vs 9% utilization


NRB525 wrote:

Subexistence wrote:

I want to apply for BCE soon and I was worried that my current 1% utilization from $20 on my 2500 limit Discover might make me look unprofitable to amex. Would it be in my favor to raise utilization to 9%? I really hate spending so if it doesn't make a difference then I plan to keep it at 1%. Otherwise I have a plan to get my spend up to 9% charging a a card then getting a refund.


If you used the Discover card in a typical month, and did not pay the current month charges down before this current statement date (understanding that you pay in full the prior month statement balance to avoid triggering interest) what would your reported statement balance be for the Discover card?


your reported statement balance would just be whatever you charged that current month.


Starting Score: Ex08-732,Eq08-713,Tu08-717
Current Score:Ex08-765,Eq08-749,Tu08-741
Goal Score: Ex08-760,Eq08-760,Tu08-760


Take the myFICO Fitness Challenge
Message 10 of 12