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Util drops and scores

Established Contributor

Util drops and scores

I recently signed up for SW on MyFico.  I was notified of a big balance change, but it indicated that my score didn't change.  I realize that not every change in util triggers a big change, but I'd expect even a point or two.  At what sort of percentage drop should I start to wonder if something might be wrong if the score isn't changing?

Chase Freedom: $1500, Citi Diamond Preferred: $3000, Barclays: $3900, Chase Disney Visa: $1500, Chase Southwest Signature: $5000, Citi TY Preferred: $3000, Cap One Platinum: $1750, Cap One Platinum Rewards: $2500, Orchard Bank: $900, Kay Store Card: $6600, PayPal $2200
Message 1 of 8
7 REPLIES
Moderator Emeritus

Re: Util drops and scores


EaglesFan2006 wrote:

I recently signed up for SW on MyFico.  I was notified of a big balance change, but it indicated that my score didn't change.  I realize that not every change in util triggers a big change, but I'd expect even a point or two.  At what sort of percentage drop should I start to wonder if something might be wrong if the score isn't changing?


It's always a YMMV-thing based on your credit profile. Some folks can go from 0% to 90% on one card and see a decent drop. Others can do the same and see no FICO change. It depends on the balances and limits of your other revolving items, whether or not CCs are over the limit, change in individual util, and change in overall util. It also depends on whether or not util is listed as a top negative item on your FICO report. Mix of credit also plays into it.

Message 2 of 8
Established Contributor

Re: Util drops and scores


llecs wrote:

EaglesFan2006 wrote:

I recently signed up for SW on MyFico.  I was notified of a big balance change, but it indicated that my score didn't change.  I realize that not every change in util triggers a big change, but I'd expect even a point or two.  At what sort of percentage drop should I start to wonder if something might be wrong if the score isn't changing?


It's always a YMMV-thing based on your credit profile. Some folks can go from 0% to 90% on one card and see a decent drop. Others can do the same and see no FICO change. It depends on the balances and limits of your other revolving items, whether or not CCs are over the limit, change in individual util, and change in overall util. It also depends on whether or not util is listed as a top negative item on your FICO report. Mix of credit also plays into it.


Thanks again for explaining.  I know I had none of those negatives, and the only change should've been the drop in balance.  I suppose it wasn't enough to trigger a change.  It's interesting about your note regarding top negative items.  Is that the way MyFICO lists them on SW?  I know about the percentages when computing scores, but it would make sense that util woudl outweight my other negs, all of which are pretty minor by comparison since i have no missed payments or anything truly negative.

Chase Freedom: $1500, Citi Diamond Preferred: $3000, Barclays: $3900, Chase Disney Visa: $1500, Chase Southwest Signature: $5000, Citi TY Preferred: $3000, Cap One Platinum: $1750, Cap One Platinum Rewards: $2500, Orchard Bank: $900, Kay Store Card: $6600, PayPal $2200
Message 3 of 8
Moderator Emeritus

Re: Util drops and scores

If you pull any report from myFICO whether you burn one of your reports on SW, purchase one, get one via TUQM, or wherever via myFICO, you'll see on the 2nd and 3rd page a scale and it'll show the things that hurt your FICO the most and help your FICO the most. And these pos/neg items are ranked in order from most hurtful to least on the negative side and opposite for positive. So someone who doesn't have util listed at all as a negative item won't see the same FICO improvements from util as someone who has it listed as #1 as a neg. BTW, you can also find the top neg items that hurt in order from many lender's reports.

 

 

Message 4 of 8
Valued Contributor

Re: Util drops and scores

Two questions what was your util % before and after the drop? Also is credit utilixzation a negative factor on your credit report?

Equifax My FICO score 814 11/29/2016, Discover TU FICO 807 12/29/2016 Citibank Equifax Bankcard FICO score 827 12/27/2016 Average of Accounts 13 years and no Installment accounts, 1 TU inquiry in 2015
Message 5 of 8
Established Contributor

Re: Util drops and scores

I had a 10 percent drop in util. And MyFico lists it as a factor that be hurting my score.

Thanks for the tips
Chase Freedom: $1500, Citi Diamond Preferred: $3000, Barclays: $3900, Chase Disney Visa: $1500, Chase Southwest Signature: $5000, Citi TY Preferred: $3000, Cap One Platinum: $1750, Cap One Platinum Rewards: $2500, Orchard Bank: $900, Kay Store Card: $6600, PayPal $2200
Message 6 of 8
Valued Contributor

Re: Util drops and scores

AndySoCal wrote:

Two questions what was your util % before and after the drop? Also is credit utilixzation a negative factor on your credit report?


 

 

 

EaglesFan2006 wrote:
I had a 10 percent drop in util. And MyFico lists it as a factor that be hurting my score.

Thanks for the tips


A 10% drop could be insignificant if your TOTAL util is over 50%.  Dropping from, say, 70% to 60% won't show much of a score change if at all.  The good place to be is under 50%.  The better place to be is under 30%.  And the best place to be is under 9%.  These are the "break points" in utilisation where you're likely to see score changes. 

EX = 849 EQ = 850 TU = 850 as of 07/2017
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Message 7 of 8
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Established Contributor

Re: Util drops and scores


thom02099 wrote:

AndySoCal wrote:

Two questions what was your util % before and after the drop? Also is credit utilixzation a negative factor on your credit report?


 

 

 

EaglesFan2006 wrote:
I had a 10 percent drop in util. And MyFico lists it as a factor that be hurting my score.

Thanks for the tips


A 10% drop could be insignificant if your TOTAL util is over 50%.  Dropping from, say, 70% to 60% won't show much of a score change if at all.  The good place to be is under 50%.  The better place to be is under 30%.  And the best place to be is under 9%.  These are the "break points" in utilisation where you're likely to see score changes. 


Thanks!  It's good to know there are tiers, as opposed to just 0.  Do installment loan balances have similar tiers, or is that only really impacted when they figure DTI?

Chase Freedom: $1500, Citi Diamond Preferred: $3000, Barclays: $3900, Chase Disney Visa: $1500, Chase Southwest Signature: $5000, Citi TY Preferred: $3000, Cap One Platinum: $1750, Cap One Platinum Rewards: $2500, Orchard Bank: $900, Kay Store Card: $6600, PayPal $2200
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