My most common "reason for concern" on the feedback sheet one gets after a credit card application is "Number of bank card accounts with high utilization".
On the Credit Karma calculators / estimators, they seem to tag the cards where I have over 60% Utilization, on an individual card, as "high utilization" on that card. Said another way, only cards with over 60% utilization go on the wall of shame.
For the actual FICO reporting, and credit scoring, does anyone have specific knowlege if that 60% is indeed the trigger for the "high utilization" metric on a single credit card?
To be clear, this question does not concern overall utilization. Individual cards only, is the topic.
Thanks
FWIW I got up to 73% and didn't see a ding for max, which I know exists personally at 99.7% and someone else reported at 93+%, but don't know where the breakpoint is as I found out the hard way that Chase was updating their reported balanced when paid now: handy feature, for everything except score testing =/.
Not certain my current 3B monitoring is behaving consistently enough for me to do any real testing at the moment, something is awkward.
Thanks for the comments.
I'll see what happens when they go below 60% in a few months, then 50%.
An individual utilization of 74% cost me 12 points, the impact on overall utilization is minimal because of the low limit.
An individual utilization going from 49% to 66% set me back 15 points; the impact on overall utilization is also minimal.
An individual utilization going from 11% to 52% set me back 31 pointsl the impact on overall utilization is minimal because of the low limit.
Sounds like there exist multiple thresholds.
@HiLine wrote:An individual utilization of 74% cost me 12 points, the impact on overall utilization is minimal because of the low limit.
An individual utilization going from 49% to 66% set me back 15 points; the impact on overall utilization is also minimal.
An individual utilization going from 11% to 52% set me back 31 pointsl the impact on overall utilization is minimal because of the low limit.
Sounds like there exist multiple thresholds.
Thanks very much for the measurements. That makes sense.
At this point, my short term goal is to get below 60% on any one card, because of the credit app decline message of "too high utilization on one card". I'm trying to take away reasons for declines. The ancillary benefit, of course, is adding points, weighted against the benefit of utilizing 0% BT offers. Always a balancing act!
@Anonymous wrote:
@HiLine wrote:An individual utilization of 74% cost me 12 points, the impact on overall utilization is minimal because of the low limit.
An individual utilization going from 49% to 66% set me back 15 points; the impact on overall utilization is also minimal.
An individual utilization going from 11% to 52% set me back 31 pointsl the impact on overall utilization is minimal because of the low limit.
Sounds like there exist multiple thresholds.
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Seems to me that does not matter which way you go either high or low utilization your score will be impacted negatively.
How can we determine the moderate utilization that will increase a credit score?
I went up as high as 80% only impacted my score down 9 pts.
Thanks bravo659, can you share what your scores were at the time, and overall utilization, CL and amount open on those? 80% on a smaller balance may not be as much impact, or if you have a long credit history, for example.