utilization drop--possible impact?

Anonymous · ‎07-09-2012

Hi all,

I was able to get my Discover card balance to 9%--dropped from 80% in May and 60% in June. I got my TU score when I had the 80% util (633) and EQ after I dropped it to 60% (647). My util has consistenly been higher than it should have been.

I have one 30 day late within the last year and another scheduled to drop off next year.

My statement period ends this week and I refuse to use my Discover again unless it is an emergency. Two questions...

1. Do you think it's possible to see a significant jump in scores? Any estimates?

2. Does Discover report at the end of the statement period each month? Do you think it is possible to see that score jump next week since the statement period ends this week?

I am planning to purchase a car (need, not a want) within the next couple weeks with a significant down payment and desperately want to see a good rate on my loan...

llecs · ‎07-09-2012

Is this your only CC? If not, how much did your overall util change?

Anonymous · ‎07-10-2012

Only CC with balance, yes--other is zeroed out.

llecs · ‎07-10-2012

How much did your overall revolving util change?

For example, the one CC is going from 60% to 9%. That's good. But if the other CC has a limit of $10k and at $0, and Discover has a limit of $1000 and goes to $90, then you really won't see any score change at all because your overall limit would decrease from 5.5% to less than 1% . Conversely, if the other CC has a limit of $100, and your Discover has a limit of the same $1000 as an example, and you pay it to $90 (9%), then your overall util drops from 55% to 8% overall. In that example, your gains would be much higher. Overall util is important. If oyu do calculate it, be sure to include any CC COs, LOCs, or HELOCs in some situations.