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Question About Utilization on a Small Credit Line Card

Established Member

Question About Utilization on a Small Credit Line Card

Hi,
 
I understand that it's important to keep utilization low on credit cards in order to boost your FICO scores.  I have a question ... I just recently paid off my Ch. 13 bankruptcy (expect my discharge papers sometime in the next month), and I have a small Orchard Bank card ($400 line).  Let's say that there is no balance on that card ... does that count just as much (i.e., 0% utilization) on this small balance card, as let's say a much larger line credit card (i.e., $5000) and the utilization on that?  Or if and when I can get a $5000 card down the road, does keeping that balance low count more than a small balance card?
 
Just curious how this works.  Thanks!
Message 1 of 5
4 REPLIES
Moderator Emeritus

Re: Question About Utilization on a Small Credit Line Card

As far as UTL is concerned-
$40 on a $400 CL
and
$500 on a $5000 CL
 
The overall and ind UTL is the same.

Swoosh60 wrote:
Hi,
 
I understand that it's important to keep utilization low on credit cards in order to boost your FICO scores.  I have a question ... I just recently paid off my Ch. 13 bankruptcy (expect my discharge papers sometime in the next month), and I have a small Orchard Bank card ($400 line).  Let's say that there is no balance on that card ... does that count just as much (i.e., 0% utilization) on this small balance card, as let's say a much larger line credit card (i.e., $5000) and the utilization on that?  Or if and when I can get a $5000 card down the road, does keeping that balance low count more than a small balance card?
 
Just curious how this works.  Thanks!



Message 2 of 5
Established Member

Re: Question About Utilization on a Small Credit Line Card

Thanks, that's what I was hoping!
Message 3 of 5
Contributor

Re: Question About Utilization on a Small Credit Line Card

Yeah, it doesn't really matter what the credit limit is... I have two credit cards, one with a $300 CL and the other with a $350 CL. I brought utilization down on both of them from 86% to 7% and you can see what it did for my scores in less than a month (see my signature).
Chase Amazon: $3,000 | Chase Slate: $4,800 | Barclaycard Upromise: $4,000 | Chase Freedom: $4,000 | CapOne Platinum: $3,500 | CapOne Quicksilver: $5,000 | Credit One Bank: $2,100 | BofA Better Balance Rewards: $1,000 | Sony Card: $1,000 | CapOne Platinum: $300 | Amex PRG: NPSL | Amex Delta SkyMiles: ???? | CareCredit: $13,560 | Discover IT: $6,500 | Barclaycard Apple: $3,500 | Overstock: $4,500 | Wayfair: $4,000
Message 4 of 5
Established Member

Re: Question About Utilization on a Small Credit Line Card

Wow, that's great.  Thanks for the responses!
Message 5 of 5