Should I get another credit card to lower my util?

[Anonymous]

I currently have only two CC's.  One has a $500 limit and the other a $4000k limit.  My current util is 53% and scores are 658, 704 and 704.  I tried to get a cli but was denied, prolly because I had been hovering at my credit limit for months until recently.  I have no dings on record for the last two years.  Should I try to get another CC to lower my util?

[MarineVietVet]

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@Anonymous wrote:
I currently have only two CC's.  One has a $500 limit and the other a $4000k limit.  My current util is 53% and scores are 658, 704 and 704.  I tried to get a cli but was denied, prolly because I had been hovering at my credit limit for months until recently.  I have no dings on record for the last two years.  Should I try to get another CC to lower my util?

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Welcome to the forums.

I wouldn't. Just try to get that utilization down as quickly as possible. FICO looks at individual utilization as well as overall utilization. Use every extra dollar you find find to attack those balances. Lowering those balances is the fastest way to improve your scores.

One thing I will ask is where did you get those scores? No one has been able to pull their own Experian score since last February. Creditors can pull Experian and also there is a CU in Pennsylvania that supplies that information to it's members only. You can only buy true FICO scores at a few places. One place is here at myfico. I suggest you do an internet search for "myfico discount codes" to save a little money. You can also purchase your Equifax score at www.equifax.com and your Transunion score at www.transunioncs.com.

From a BK years ago to:
7/09 TU-742 EQ- 779
8/09 TU-765 EQ- 783
9/09 EX pulled by lender 802

You can do the same thing with hard work.

[haulingthescoreup]

Ideally, you would do it the other way around: lower your util, and then get another CC. Three CC's seems to be the figure that makes the FICO scoring formulas happy.

Lenders are pretty wary these days, and they know when someone is doing what you're describing --getting another card with not-great (not bad, but not great) scores solely to lower util.

If you go looking for a third card with your reports not in their most cleaned-up, appetizing shape, you're going to get a less-than-good deal, and you might wind up with another $500 card that won't help you much, and won't grow with you.

How fast are you currently paying down your card(s)? Do you have an organized plan, as opposed to sending in extra money when you find it? (I'm certainly not aiming that at you particularly; it's just a common mindset for those who are just starting to give a cold hard stare at their credit.)

You're listing three credit scores. You may not realize this, but consumers have been unable to buy their own Experian FICO scores since February 13, 2009. Unless your EQ (Equifax) and TU (TransUnion) scores are from this site, or the Equifax site (for the EQ score) or the transunioncs site, they're what we call FAKO's --a great way for credit bureaus and others to make money off of unsuspecting consumers, and of absolutely no value to see how lenders see you. Note the -cs at the end of the transunion reference --the regular TU site will sell you FAKO's.


eta: OK, so once again, Mr. Terse marinevietvet says what I said, in one third the space.

Message Edited by haulingthescoreup on 02-08-2010 08:31 PM

[Anonymous]

Yes, I do have a systematic plan to pay down my credit cards.  I just got my tax return so I was able to pay down a big chunk at once.

I'm using a credit monitoring service from USAA that gives me daily access to my FICO scores.  They list an Experian score, but maybe it's an estimate. 

[haulingthescoreup]

The report monitoring is nice, but alas, they're not FICO scores.