Reply
New Member
roost3r
Posts: 3
Registered: ‎01-07-2014
0

Clarification of CC Utilization Please

Can someone please clarify for me the utilization aspect of revolving credit on CC's?

 

Im currently sitting at a 673 FICO and a 47% CC utilization. I plan on paying these down before the next cycle this month so my FICO will jump. Im confused though on whether the utilization needs to be <10% (preferably 1%) on the whole line of credit across all cards or pay all cards off but one and have that one at 1% to 10% of its credit limit.

 

For clarification:

 

Total credit line $3500 paying utilization to <10% would be $350 left on one card even if that card only has a $1000 limit

 

OR

 

Pay off 2 cards leaving 0 balance leaving the one credit card with a $1000 limit paying it to 10% would be $100.

 

I know this is probably stupid but Im looking for the magic number and the difference between the 2 could be the difference in scorning.

 

Much appreciated in advance!

Jeff

Moderator
Shogun
Posts: 12,952
Registered: ‎04-15-2011
0

Re: Clarification of CC Utilization Please


roost3r wrote:

Can someone please clarify for me the utilization aspect of revolving credit on CC's?

 

Im currently sitting at a 673 FICO and a 47% CC utilization. I plan on paying these down before the next cycle this month so my FICO will jump. Im confused though on whether the utilization needs to be <10% (preferably 1%) on the whole line of credit across all cards or pay all cards off but one and have that one at 1% to 10% of its credit limit.

 

For clarification:

 

Total credit line $3500 paying utilization to <10% would be $350 left on one card even if that card only has a $1000 limit

 

OR

 

Pay off 2 cards leaving 0 balance leaving the one credit card with a $1000 limit paying it to 10% would be $100.

 

I know this is probably stupid but Im looking for the magic number and the difference between the 2 could be the difference in scorning.

 

Much appreciated in advance!

Jeff


The red one!!!!


Starting Score: 504

July 2013 score: EQ FICO 819, TU08 778, EX "806 lender pull 07/26/2013
Goal Score: All Scores 760+, Newest goal 800+

Take the myFICO Fitness Challenge

Current scores after adding $81K in CLs and 2 new cars since July 2013
EQ:809 TU 777 EX 790 Now it's just garden time!
Community Leader
Valued Contributor
user5387
Posts: 1,794
Registered: ‎07-01-2010
0

Re: Clarification of CC Utilization Please

New Member
roost3r
Posts: 3
Registered: ‎01-07-2014
0

Re: Clarification of CC Utilization Please

Thank you both for taking the time to answer. I appreciate the info!

Jeff

Valued Contributor
Jazzzy
Posts: 2,679
Registered: ‎07-29-2009
0

Re: Clarification of CC Utilization Please

Jeff, I agree with the above advice. My scores start to slide a few points here and there when I let small balances show on a few cards. The various scoring methods definitely seem to want most of those cards to have a zero balance. Let it show on just one.


myFICO is the consumer division of FICO. Since its introduction 20 years ago, the FICO® Score has become a global standard for measuring credit risk in the banking, mortgage, credit card, auto and retail industries. 90 of the top 100 largest U.S. financial institutions use the FICO Score to make consumer credit decisions.

>> About myFICO
FICO Score - The Score that matters
Click to Verify - This site chose VeriSign SSL for secure e-commerce and confidential communications.
Fair Isaac Corporation is a BBB Accredited Financial Service in San Rafael, CA
FOLLOW US Social Media Facebook Twitter Pinterest Google+
}