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Utilization drops significantly and so do scores? Why?

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CH-7-Mission-Accomplished
Valued Contributor

Re: Utilization drops significantly and so do scores? Why?


@Anonymous wrote:

Hi NRB525,

 

I checked on the capital one site and was prequalified for both the quicksilver (which says it's a 3k minimum) and the VentureCard (5k minimum), but i think the quicksilver would be easier to get and as i need to buy some new computer equipment and pay for it over 3 months, I like the 0% balance for 6 months that the card provides. Haven't applied yet though and was just going to wait until next month when my utilization shows as 1% on each of my 2 cards and the 23% cl increase Capital One gave me this month on my secured card.

 

But question for you can you clarify what you mean when you say "my opinion is that cards should be left to report naturally, 3 of 3 or in my case 17 of 17."? i'm not sure I understand. If you have 3 cards should you be making sure to have a small utilization on each? That seems like a lot to manage especially when you get to that 17 your speaking about.

 

thanks for your advice.


I respectfully disagree about letting your cards report naturally when your scores are still this low.  When you have scores of 760 or 740 or even 720, cool, but when you are down at 640, you don't want to take a 10 or 15 point hit.  My scores have been hovering around 695 at two years post filing.  Last month I let my Cap 1 Venture report about a 3.5K balance on a 13K limit.  My Exp. dropped 15 points,  This month I paid all of it but $500, and I got the 15 points back.

 

You want your FICO scores over 680 on all three bureaus.  That should be your goal.  

 

Let one card report a balance that is at 1% to 5% of your total revolving limits and make sure that one card is not over 30% of its individual limit.

 

If you have five cards and you are using them and they all report a balance, your score will take a hit.

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