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Frequent Contributor
JPersat
Posts: 299
Registered: ‎05-28-2012

Reducing util

Does reducing utli make *that* much of a difference?

Current balances: Only the BBRZMC has reported its balance for the month. The two zero balances won't post until around the 22nd. Merrick is new, so I have no idea when it'll show up. Capital 1 cut their statement today, so no idea when it'll post.

 

HSBC #1- 0/300

Credit One - 0/350

Crapital 1 - 284/500

BBRZMC - 165/500

Merrick Bank - 170/500

 

Last month they reported 175/300, 211/350, 488/500, BBRZMC was 291/300 (for May), and Merrick wasn't there.

 

So last month our util was pretty high - about 81%. This month it's down to  28% (per my computer's calculator :smileyhappy:  ) I saw an 8pt increase on credit karma from 583 to 591 after BBRZMC reported its 165 balance. I know it's FAKO and means diddly squat, but our May 12 FICOs were 565/556 per our lender. So we should see a jump, I'm hoping..with dropping our util down by about 60 percent.

 

Just looking for reassurance :smileyhappy: All of the extra money that doesn't go into savings is being put towards credit cards. I have an itch to go shopping for vacation, but it's hard!


Starting Score: 492 02/12
Current Score: TU: 668 (FICO), EQ: 668 (FICO). EX: 651(lender pull 9/27/12)
Goal Score: 660



Super Contributor
marty56
Posts: 5,679
Registered: ‎10-06-2007

Re: Reducing util

Next to payment history, util is next important factor in your creddit score.  It effects your DTI and AA as well.  It also doesn't require time or GW to fix.

09/12/2013 FICO: EQ: 772 EX:813 TU:752
Frequent Contributor
BoysMumx2
Posts: 309
Registered: ‎01-24-2008

Re: Reducing util

I saw huge score leaps when I got my utilization down from 65% to 5%, so I can attest that yes, it makes a huge difference.  Getting the number of accounts reporting a balance down makes a big difference as well.  I noticed Equifax seemed to really like that combination!


Starting Score: EQ 622, TU 676, EX 643 (mtg lender pulls) 2/1/12
Current Score: EQ 743, TU 775 (6/18 MyFico), EX 722 (per CITI approval letter 6/29/12 pull)
Goal Score: New goal: 760+ on all 3


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Moderator Emeritus
Tuscani
Posts: 6,182
Registered: ‎03-29-2007

Re: Reducing util

And if you can, spread the balance across multiple cards.

Established Contributor
compassion101
Posts: 560
Registered: ‎06-06-2012

Re: Reducing util



BoysMumx2 wrote:

  Getting the number of accounts reporting a balance down makes a big difference as well. 



Tuscani wrote:

And if you can, spread the balance across multiple cards.




These two things seem to be at odds with each other and can't both be right. Or might it be either depending on the bucket you are in?

 

 

Frequent Contributor
BigDaddy18
Posts: 673
Registered: ‎04-23-2009

Re: Reducing util

Yes your on the right track it does make a huge diffrence, so keep up othe good work and if I were you in about 6-12 months I would go ahead and try to do a CLI on a couple of your lower CL cards so that your utilization in the future has some wiggle room.

 

Good Luck!


Starting Score: EQ FICO 777
Current Score: EQ FICO 803
Goal Score: EQ FICO 810


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Valued Contributor
Jazzzy
Posts: 2,672
Registered: ‎07-29-2009

Re: Reducing util


compassion101 wrote:


BoysMumx2 wrote:

  Getting the number of accounts reporting a balance down makes a big difference as well. 



Tuscani wrote:

And if you can, spread the balance across multiple cards.




These two things seem to be at odds with each other and can't both be right. Or might it be either depending on the bucket you are in?

 

 


I believe that showing fewer balances on fewer cards is beneficial. My score sometimes drops when I accidentally let even a tiny balance show on an additional card. I believe in keeping the number of reported balances down.

Mega Contributor
RobertEG
Posts: 17,456
Registered: ‎03-19-2007

Re: Reducing util

The util of credit category is more comprehensive than just overall % util of revolving, and has many factors that can be managed today, rather than six months or a year from now.

Revolving util has at least three components.  Overall % util, sum of individ revolv % utils, and % with balance.

Of those three, the ones that are most "controllable" on a monthly basis are individ utils and % with balance, which can be altered by shifting deck chairs without necessarily even reducing overall % util.  Higher utils have proportionally more negative impact, and thus on a monthly basis, hitting the highest util card can help more than paying down, say, a 20% util card.  And % with balance can be improved by putting $$ into getting another card down to $0.

 

Keeping utils low can also have less obvious benefits, such as avoiding potential credit limit decreases, or on the flip side, showing history that might foster the grant of higher CLs.

 

Lots of stuff to tweak.  At a combined overall effect of 30%, score improvements can be more substantial than the fixation on lesser items, such as pursuing deletion of inquiries, which are short-lived, of relatively low impact, and almost impossible to get deleted.

 

Of course, the obvious rub in the ointment..... attacking utils requires $$$ !


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