Reply
New Member
Posts: 7
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
Posts: 13,582
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!
Valued Contributor
Posts: 1,794
Registered: ‎07-01-2010
0

Re: Clarification of CC Utilization Please

New Member
Posts: 7
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
Posts: 2,682
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.

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.

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.