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New Member
Posts: 3
Registered: ‎07-01-2013
0

Credit utilization reduced and only 7 point

Hi

This is my first post; however I am an avid reader of this forum and  has taken many advice which helped me to improve my credit score.  You guys truly helped many people thru out the years. Thank you.

 

The traditional wisdom is that when you lower credit utilization you get a significant bump in credit score.

In past month I have reduced my credit utilization from 77% to 26%  yet I only received only 7 point. Now my EQ fico score is stuck in 657. Fico does show the credit utilization to 26% as of this morning.

 

Do you know why I only received 7 point?

Moderator
Posts: 13,897
Registered: ‎04-15-2011
0

Re: Credit utilization reduced and only 7 point

It just depends on what else is on your CR.  I know max % boost is less than 9%.

Starting Score: 504
July 2013 score:
EQ FICO 819, TU08 778, EX "806 lender pull 07/26/2013
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Current scores after adding $81K in CLs and 2 new cars since July 2013
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Regular Contributor
Posts: 140
Registered: ‎10-03-2011
0

Re: Credit utilization reduced and only 7 point


Shogun wrote:

It just depends on what else is on your CR.  I know max % boost is less than 9%.


What do you mean the max boost is 9%?  If you go from 100% utilization to 2% utilization, you'll never see more than a 9% boost to score?

Established Contributor
Posts: 842
Registered: ‎10-15-2012
0

Re: Credit utilization reduced and only 7 point

It means your max utilization score comes from having less than 9% overall UTL. Ideally one card should report less than 9 percent, the rest zero.

Starting Score: 515
Current Score: EQ08 712 EX08 729 TU08 743
Goal Score: 740+

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Valued Contributor
Posts: 1,978
Registered: ‎04-07-2009
0

Re: Credit utilization reduced and only 7 point

Do you have an ynegative information being reported if so how recent?

Equifax My FICO score 815 5/28/2012, 818 on 7/28/2014 . Average of Accounts 12 years and no Installment accounts. MyFICO TU 810 6/26/2012 809 4/21/2013 MyFICO XPN -805. 2/26/2014 Discover TU FICO 813 App free since 9/2011
New Visitor
Posts: 1
Registered: ‎07-02-2013
0

Re: Credit utilization reduced and only 7 point

HI, first off congrats on lowering the utilization! thats a great start to a healthier credit score. secondly, how did you reduce it? did it takes months or did it happen in one day? Because that could be a major factor into why your score only increased 9 points. What also matters if you have any negative (tax lein, bankruptcy etc) on your report.

New Member
Posts: 3
Registered: ‎07-01-2013
0

Re: Credit utilization reduced and only 7 point

1)  Well I have 2- 30 days miss payments - 3 years 4 months old. I had this on my report last time I  ran report 3 months ago.

2) I have 2 collections but both are  3 years 9 months  old and they were in the report last time I ran report.

3) I reduced my  UTLI over a month in 3 different cards. All three cards are reporting balance now. However in one card I got  $ 4000 increase and another card $ 1000. Here are my card info

JC Peny – limit  $ 1550 – CLI - $1000, Balance $25

Care Credit ( GE) limit - $ 7000- CLI - $4000 , Balance -  $2,200

Capital One – Limit $2000 – Balance - $470

All together I paid down  $2,300 in one month.

Frequent Contributor
Posts: 283
Registered: ‎12-16-2011
0

Re: Credit utilization reduced and only 7 point

That's great that you paid down so much that quickly however, having a balance on 3 cards is holding you back from a higher score. Not much but, the 3 balances are probably keeping the score down a bit.

Equifax FICO 781, Transunion FICO 821, Experian FICO 807,

810 goal on all three by 3-1-2015
Valued Contributor
Posts: 1,978
Registered: ‎04-07-2009
0

Re: Credit utilization reduced and only 7 point

If this is  the case you would see a reason to many accounts with balances.

Equifax My FICO score 815 5/28/2012, 818 on 7/28/2014 . Average of Accounts 12 years and no Installment accounts. MyFICO TU 810 6/26/2012 809 4/21/2013 MyFICO XPN -805. 2/26/2014 Discover TU FICO 813 App free since 9/2011
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