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Credit Utilization Jump

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tonyjones
Valued Contributor

Credit Utilization Jump

I have three revolving accounts right now with a credit utilization of 75%, If I bring it down to about 10% what do you expect my score to JUMP to?

 

Right now it's at 633 (According to Walmart TU Score).

 

Just trying to get an idea if I should bring it down right now before I start app'ing for more CC's.

 

 

Anybody with past experience please chime in thanks!!!

Current Fico Scores: (December 2023)
Message 1 of 7
6 REPLIES 6
fused
Moderator Emeritus

Re: Credit Utilization Jump

Any bad stuff on your reports?

 

Lates? If so, how late and how recent?

Collections? If so, when was the date of first delinquency?

Charge-offs? If so, how old and how much is owed if anything?

Public records? If so, how old?

Any inqs less than a year old?

How long is your credit history?

What is your AAoA (average age of all of your accounts on your reports?

Message 2 of 7
tonyjones
Valued Contributor

Re: Credit Utilization Jump


@fused wrote:

Any bad stuff on your reports?

 

Lates? If so, how late and how recent?

Collections? If so, when was the date of first delinquency?

Charge-offs? If so, how old and how much is owed if anything?

Public records? If so, how old?

Any inqs less than a year old?

How long is your credit history?

What is your AAoA (average age of all of your accounts on your reports?


No Lates

One Collection Paid (falls off Dec 2015)

One Charge Off (falls off Dec 2015)

One Public Record Judgement Paid (falls off February 2015).

One Inquiry less than a year old

Credit History = ~ 12 years

AAoA = 4 Years

 

One Auto Loan and One Student Loan, paid on time with History of ~14 months for both.

Current Fico Scores: (December 2023)
Message 3 of 7
MT936
Established Contributor

Re: Credit Utilization Jump

Not sure but my record is clean and when I brought my utilization down from 30% to about 5% my score jumped 7 pts
Amex Blue Cash Everyday: $25,000 | Navy FCU Cash Rewards: $25,000 | Discover It: $20,500
Chase Freedom: $12,500 | Citi Double Cash: $10,000 | Bank of America Cash Rewards: $8,000

Message 4 of 7
fused
Moderator Emeritus

Re: Credit Utilization Jump

FICO Scoring has a ton of moving parts, so it's difficult to determine exactly how many points you'll gain or lose when there's a big change to your credit reports. I will give you an "educated" guess on where your score will go if you go from 75% to 10% util.

 

Your baddies are quite old, yet your score is lower than what I would expect. It appears the util is having a big affect on your score. Keep in mind myfico and Walmart are both TU FICO 08 scores. The 08 formula is more sensitive to high util. My guess is you'll gain 50 points or more by going from 75% util to 10%. You might get even more points if you get your util below 10%.

 

I would certainly pay down your CC balances before apping. Make sure the lower util is reporting on all three of your reports before you go apping.

Message 5 of 7
tonyjones
Valued Contributor

Re: Credit Utilization Jump


@fused wrote:

FICO Scoring has a ton of moving parts, so it's difficult to determine exactly how many points you'll gain or lose when there's a big change to your credit reports. I will give you an "educated" guess on where your score will go if you go from 75% to 10% util.

 

Your baddies are quite old, yet your score is lower than what I would expect. It appears the util is having a big affect on your score. Keep in mind myfico and Walmart are both TU FICO 08 scores. The 08 formula is more sensitive to high util. My guess is you'll gain 50 points or more by going from 75% util to 10%. You might get even more points if you get your util below 10%.

 

I would certainly pay down your CC balances before apping. Make sure the lower util is reporting on all three of your reports before you go apping.


 

Thanks for your input! That is what I was suggesting, when I had one credit card with $1000 limit my score was the same as right now so I know that the high credit utilization is definitely impacting me. I would just like to get it 700 or above. I'll report back in a month or two and post an update. 

Current Fico Scores: (December 2023)
Message 6 of 7
fused
Moderator Emeritus

Re: Credit Utilization Jump

If you can, try to have only one card reporting a balance. One card reporing 9% util or below is ideal.

Message 7 of 7
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