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Fico max out CC %

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jwills1218
Regular Contributor

Fico max out CC %

What % of Utl does the scoring model consider it maxed out?
8/14/2014
EQ: 604
TU: 607
EXP: 610

8/22/14
607, 612, 629
Message 1 of 11
10 REPLIES 10
jwills1218
Regular Contributor

Re: Fico max out CC %

Found it, 90%.

Feel free to delete. I can't do it on my phone.
8/14/2014
EQ: 604
TU: 607
EXP: 610

8/22/14
607, 612, 629
Message 2 of 11
Shogun
Moderator Emeritus

Re: Fico max out CC %

I have it at 90% also.

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!

June 2017 update: All scores over 820, just pure gardening now.
Message 3 of 11
RobertEG
Legendary Contributor

Re: Fico max out CC %

+1

As an aside, in my opinion, the more significant impact of a maxed-out card is its potential to generate an internal review of your account by the creditor, with possible reduction of credit limit to lower their risk.

 

The FICO impact will "go away" once the util is paid down, as % util of CL is not based on prior util levels.

Message 4 of 11
jwills1218
Regular Contributor

Re: Fico max out CC %

Agreed! My Amex once had a $8100 CL. I had $7800 on it and my other cards were 90%. When I paid 1k to Amex they immediately lowered my cl. This happened a few times. I've paid off most of my other debt to this point. Hoping as I make 500-600 payments they don't continue to lower it. (prib did it 4 times on my delta and once on blue from 2500 to 1k)
8/14/2014
EQ: 604
TU: 607
EXP: 610

8/22/14
607, 612, 629
Message 5 of 11
Revelate
Moderator Emeritus

Re: Fico max out CC %


@RobertEG wrote:

+1

As an aside, in my opinion, the more significant impact of a maxed-out card is its potential to generate an internal review of your account by the creditor, with possible reduction of credit limit to lower their risk.

 

The FICO impact will "go away" once the util is paid down, as % util of CL is not based on prior util levels.


Is this particularly common from what you've seen on a card that is maxxed yet paid down fairly quickly?  

 

I can understand that if it's at a maximum balance and a minimum payment is made month after month; however, I don't think a singular datapoint is enough to justify that unless your reported income isn't sufficient for their risk model (which begs the question why they extended you that limit anyway)?




        
Message 6 of 11
vanillabean
Valued Contributor

Re: Fico max out CC %


@jwills1218 wrote:
Agreed! My Amex once had a $8100 CL. I had $7800 on it and my other cards were 90%. When I paid 1k to Amex they immediately lowered my cl. This happened a few times. I've paid off most of my other debt to this point. Hoping as I make 500-600 payments they don't continue to lower it. (prib did it 4 times on my delta and once on blue from 2500 to 1k)

Paying off credit card debt is often a choice between the card with the highest interest rate and the card with the lowest balance (debt snowball). But yes there are other factors, and a maxed-out card can certainly result in balance chasing. You may also want to protect cards that have low interest rates or high credit limits, especially when no annual fees.

Message 7 of 11
Anonymous
Not applicable

Re: Fico max out CC %

 

Here is a link to an article that I found on credit utilization and score:

 

http://www.creditkarma.com/article/CreditCardUtilizationAndScore

 

From personal experience, i am tracking the previous balance, payments/credits, fees and interest, transactions, new balance, credit limit, available credit and then i have an column that calculates the utilization of balance to limit at the time the bill prints the statement.  i would recommend tracking your statements in excel and see what your balance is to what your credit limit is and tracking if your score goes up or down.  i have a $3,000 credit limit and i had a balance of $1795.00 the other month.  now that created a 59.83% utilization which caused my credit to tank all the way down from 664 to 634 in month but i paid it in full and my score went back up to 657 as of this month.  

 

from what i have gotten from capital one is to keep your card balance maximum of 30% or under.  from my research i think it is 10% increments.  

 

Thoughts?  anybody have any other data to add?

 

less than 10% = excellent   / Grade A

less than 20% = good          / Grade B

less than 30% = fair              / Grade C

less than 40% = bad             / Grade D

less than 50% = really bad  / Grade F

 

the summary is that every time my utilization goes over 30%, i go down in credit score.  My personal rule is pay the card before the card statement is due down below 9% if at possible.  When I do that, my score seems to go up.  According to the chart that (link above), people that keep their cards 10% or lower have the highest credit scores.  means their risk is lower

 

 

 

 

 

Message 8 of 11
Anonymous
Not applicable

Re: Fico max out CC %

Maybe you can help me out then?

 

When i was originally prequalifying for an FHA loan with my fiance in September 2012, my TU- 664, EQuifax-644, and EX- 637.  At the time I had $699/3,000 utilized on a Capital One card, and $295/300 utilized on an Orchard Bank Card.

 

I knew nothing of UTIL at the time adversely affecting credit scores.  When my credit score was run again in December 2012 I had $2,997/3,000 and $297/300 utilized.  Now TU-654, EQ- 623, and EX- 621, which is unacceptable for the loan.  

 

We were able to proceed using the original scores, but the credit report WILL be re-run before the application is accepted or rejected at the end of the month.

 

When it is re-run, I will have balances of $0 on both cards (which report this week).  What kind of scores can I expect in a few weeks?

 

Thanks in advance.

Message 9 of 11
vanillabean
Valued Contributor

Re: Fico max out CC %

Message 10 of 11
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