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Utilization question

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MrCredit
Established Contributor

Utilization question

Is your FICO score concentrating more on your utilization on accts. I went from 2 citi cards to one and moved 10264 to the other card, combined they now have a 28100 limit. 48% util. The other citi card is closed. Before this transition the other card was at 90% and the 2nd citi card was at 21%...was this a good move?... should I concentrate on paying off the cards with higher utilizations? My highest is $7280 on a 12k limit BOA 60% Thanks

Trying to get in the 700s. In the mid 650's now. Have lots of inq this year on EX. 

Message 1 of 8
7 REPLIES 7
psychic
Moderator Emeritus

Re: Utilization question

I'm just a little confused.  Is this the same Citi card you mentioned in this thread?

 

http://ficoforums.myfico.com/fico/board/message?board.id=creditcard&message.id=128623

 

The credit line on this Citi card was raised from $28,100 to $31,400. 

 

The response to your utilization question depends upon this card's credit limit.

 

 

 

Message Edited by psychic on 11-16-2008 01:04 PM
EQ 814 / TU 815 / EX 842
Message 2 of 8
MrCredit
Established Contributor

Re: Utilization question

Yes I am using this as an example counting the CL before I received the CLI. I want to see if I made the right move here.
Message 3 of 8
MrCredit
Established Contributor

Re: Utilization question

It was raised though, I want to see if I made the right decision and what to expect with fico scoring... the CL is 31.4k but I wanted to know prior to this if I made the correct decision.
Message 4 of 8
Anonymous
Not applicable

Re: Utilization question

Dude, you're over $21,000 in credit card debt.  That's insane.

You shouldn't be worried about your credit scores at this point, you need to focus on paying off that debt.

 

This is what I can deduce from your word problem:

 

                                Card1                        Card2                       Resulting Card

Credit Line                 11404                       9923                         28100  

Balance                     10264                       2084                         13488

% Utilization                90%                          21%                           48%

 

It appears that your new combined card has a higher credit limit than Card1 + Card2 to the tune of about $6700.

This increase in "available credit" will help your score, because your effective utilization (the sum of all balances / the sum of all credit lines) is lower.   Your old utilization was 57.8%.   Your new utilization is 48%.  Therefore you should see a small increase in your score.  But 48% is still way too high.  You need to get that down to below 10%.

 

And don't you ever post a word problem like that again.  Are you trying to torture us?

 

Peace

 

Message Edited by leggo on 11-16-2008 11:40 PM
Message 5 of 8
Anonymous
Not applicable

Re: Utilization question

leggo, you're KILLING me!   Smiley Very Happy    Excellent reply.

Message Edited by writemikep on 11-17-2008 10:01 AM
Message 6 of 8
marty56
Super Contributor

Re: Utilization question

You could get close to 700 if you lower util to 9% or better and dont apply for any more credit.
1/25/2021: FICO 850 EQ 848 TU 847 EX
Message 7 of 8
Madison
Regular Contributor

Re: Utilization question

You did the right thing.
Message 8 of 8
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