09-14-2012 07:26 AM
Here is a question that I have & hope that someone can answer. One of the reason risk codes comes back as "High balance on revolving account". The credit limit is $ 1,000 and the utilzation rate was at 99% or a balance of $ 990. At what balance or utilization percentage will it no longer be a factor as a high balance as far as keeping the score lower? In other owrds when I am at 75%, 50%, or what balance & utilzation?
09-14-2012 07:31 AM
Balance is a separate FICO code. Sometimes you'll see a reason code saying "the balances on your revolving accounts are too high".
Per util, ideally you'd want to have all CCs at $0 but one and get the one to under 9% of the CL. YMMV on everyone's credit of course. But I personally have seen a negative comment of high util at 16 or 18% (I'd have to dig up old reports...def. under 20%). It's YMMV on your credit and scoring bucket. Some can have high util at 50% and not see the comment.
09-14-2012 08:02 AM
Ok thanks. Do you think that if the average utilzation percentage is around 75%, down from 99%, the average on 6 revolving accounts, that the score will go up some what (a little)??
09-14-2012 08:07 AM - edited 09-14-2012 08:07 AM
Probably not, unless FICO saw any card at 100% or more as maxed. If util is listed as a top one or two neg. item on the FICO report, and if someone with 99% has a solid mix of credit (3 or more CCs), then that person probably won't see any gains until the card hits below 50%, and will rapidly see increases below that threshold, especially below 20%-30%.
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.