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Clarification of CC Utilization Please

New Member

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

Message 1 of 5
4 REPLIES
Moderator Emeritus

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+
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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!

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Message 2 of 5
Valued Contributor

Re: Clarification of CC Utilization Please

Message 3 of 5
New Member

Re: Clarification of CC Utilization Please

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

Jeff

Message 4 of 5
Highlighted
Valued Contributor

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.

Message 5 of 5