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Hitting that sweet spot for utilization

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NRB525
Super Contributor

Re: Hitting that sweet spot for utilization


@cluessJohn wrote:

MacFrosty:  Realize that utilization is only part of FICO scoring.  Also, realize that utilization is just a snapshot of where you stand one a particular card when the statement cuts.  Utilization can be played with when the need arises (eg you plan to apply for a load, new card, etc).  What can't be played with is a long track record of using your cards and paying them in full and several days before the due date.  That makes the most sense in the long run.   The CCC's will see you using their card responsibly and will reward that behavior with higher CLs.  Higher CLs make the utization game much easier to play and more beneficial. An artifical $25 balance on a card with a $5K CL looks much than having a $300 CL.

 

Focus on using your cards responsibly and only worry about utilization when you need to bump up your FICO score.


^ This

 

OP: Note that your scores have already risen a lot in the last few months. Good job! The main thing to do is just stay within the credit limits and pay on time, by the due date, not necessarily before statement cuts. As you build months of activity your scores will naturally climb. No need to worry yourself about the few noise moves for now as various balances report month to month. The trend will be up as long as you pay on time every month. And your internal score with Chase and CapOne will grow as well when you use the cards.

 

Later, when your scores get higher and you think it is time to app, then you can start spending more time with "pay before statement" games to get the last few points out of your cards. Even then, don't expect a huge boost, it's more for stabilizing the scores at that point. The longer your history, the better the base you have to work from.

 

Good luck!

High Bal Jan 2009 $116k on $146k limits 80% Util.
Oct 2014 $46k on $127k 36% util EQ 722 TU 727 EX 727
April 2018 $18k on $344k 5% util EQ 806 TU 810 EX 812
Jan 2019 $7.6k on $360k EQ 832 TU 839 EX 831
March 2021 $33k on $312k EQ 796 TU 798 EX 801
May 2021 Paid all Installments and Mortgages, one new Mortgage EQ 761 TY 774 EX 777
April 2022 EQ=811 TU=807 EX=805 - TU VS 3.0 765
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