Is util. based on overall limit or indiv. card?

[KickSpork]

When calculating scores, should I be worried about using x% of my overall credit availablility, or x% of each individual card?

[user5387]

(1)  overall utilization

(2)  maxed out cards

(3)  individual card utilization

(4)  proportion of cards with reported balances

[KickSpork]

Thank you - so I have a fair amount of money in available credit - no balances on any cards except my Citi.  CL is $12,500 and I'm at about a $5,000 balance (making more than minimum payments each month).  That puts me at roughly 40% usage.  Should this credit usage affect my score too much?

[avggoal700]

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@user5387 wrote:

(1)  overall utilization

(2)  maxed out cards

(3)  individual card utilization

(4)  proportion of cards with reported balances

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On #2, what % is considered maxed out?  

[Revelate]

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@avggoal700 wrote:

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@user5387 wrote:

(1)  overall utilization

(2)  maxed out cards

(3)  individual card utilization

(4)  proportion of cards with reported balances

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On #2, what % is considered maxed out?  

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It's likely a step-function penalty just like everything else in the algorithm.

I do know anecdotally from my own testing that certainly everything above 95% is slapped hard (was hit 14, 14, 21 points respectively when I hit north of there utilization wise on a single tradeline on Beacon 5.0 with my mixed file status even), but I don't know what the breakpoints are below that as I didn't carry the balance.  

If I ever get a 0% offer on a low limit card I'll give it a whirl for testing (when I'm not breaking in new lenders / cards).

[user5387]

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@KickSpork wrote:

Thank you - so I have a fair amount of money in available credit - no balances on any cards except my Citi.  CL is $12,500 and I'm at about a $5,000 balance (making more than minimum payments each month).  That puts me at roughly 40% usage.  Should this credit usage affect my score too much?

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Overall utilization is good, and you're not maxing the card.

I expect that paying down the card would help you some, but perhaps not a big breakthrough.

This is a good example of how to carry a balance -- isolate the balance on one or two high-CL cards.

[user5387]

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@avggoal700 wrote:

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@user5387 wrote:

(1)  overall utilization

(2)  maxed out cards

(3)  individual card utilization

(4)  proportion of cards with reported balances

---

On #2, what % is considered maxed out?  

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Various threads cite figures in the 70-90% range.

FICO scoring divides people into categories, and it's possible that the definition of "maxed out" varies with the bucket you're in.

Also, I expect it's fallacious to assume that if maxed out starts at N %, then a utilization of N-1 % means you're in the clover.

FICO scoring models are based on heavy crunching of actual reports, rather than people plucking magic numbers out of the air.

[KickSpork]

I don't have anything maxed out at the moment.  I guess I was curious because I'd like to know if I should spread that balance over other cards (which have no balance), or keep it on that card.  Interest rate is ok on the Citi.

[user5387]

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@KickSpork wrote:

I don't have anything maxed out at the moment.  I guess I was curious because I'd like to know if I should spread that balance over other cards (which have no balance), or keep it on that card.  Interest rate is ok on the Citi.

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I don't know whether spreading it out a bit would help or hurt.  You would lower the individual card utilization but have more cards reporting balances.  These are conflicting factors in utilization scoring.

As a practical matter, if you are carrying a balance, it's smart to avoid giving any specific creditor a reason to get tired of you, and this would argue in favor of spreading things out a bit.

This is one reason why high-CL and CU cards are so valuable -- you can fly below the radar.

[Revelate]

If that 780 score was pulled from here, I really wouldn't be stressing over it: your revolving utilization numbers can't be that bad if you have a gold-plated score (north of 760 by my definition).