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New Member
Posts: 9
Registered: ‎06-10-2013
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will my score go up if...

i have a 618 but need a 620 for my mortgage approval. my credit card utilization was at 42% but i just made a payment to lower that to 30%. what do you think the increase in score will be with such a small change. the balance is only $200 so its only a $25 dollar payment but will still show a better utilization of credit card.

also, how can i get this payment updated to my report now. i dont want to wait until the 6th of next month, which is when the credit company reports.

Valued Contributor
Posts: 2,658
Registered: ‎06-05-2008
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Re: will my score go up if...


tempmjt1 wrote:

i have a 618 but need a 620 for my mortgage approval. my credit card utilization was at 42% but i just made a payment to lower that to 30%. what do you think the increase in score will be with such a small change. the balance is only $200 so its only a $25 dollar payment but will still show a better utilization of credit card.

also, how can i get this payment updated to my report now. i dont want to wait until the 6th of next month, which is when the credit company reports.


Two things;  First, come up with the extra 160 to make it 3%.  That will help you a lot more than 30.  Once the payment posts, you can pay to have a rapid rescore done and that will update it.

3-26-15: FICO EXP: 814 - EQU:813 - TRAN: 809 - AVG: 812 +262 points from JUN 2008 - MY CREDIT JOURNAL

New Member
Posts: 9
Registered: ‎06-10-2013
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Re: will my score go up if...

i've been told to keep it at 30% not 3%. They say you want to carry a balance but i didnt think to go that low. Have you seen proof of that for yourself?

Valued Contributor
Posts: 2,658
Registered: ‎06-05-2008
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Re: will my score go up if...

tempmjt1 wrote: i've been told to keep it at 30% not 3%. They say you want to carry a balance but i didnt think to go that low. Have you seen proof of that for yourself?

Yes.  In my personal experience, utilization over 30% can decimate your score.  But my sweet spot for the most possible points seems to be 2 to 3 percent.  I lose points when more than one card posts a balance, and a few points when all cards are zero, but I lose the most when my utilization is high.  But don't take it from me.  It has been discussed exhaustively in threads including this one where distantarray posted a chart from bobwang at the other board.  Based on this, you can lose 20 to 50 points for 30% utilization depending on your profile.  These are actual numbers sampled from real credit reports, and for all of them the sweet spot is somewhere under 10%.  Best is to try a few months at different percentages on your own, and see what works best.

 

3-26-15: FICO EXP: 814 - EQU:813 - TRAN: 809 - AVG: 812 +262 points from JUN 2008 - MY CREDIT JOURNAL

Established Member
Posts: 23
Registered: ‎10-22-2012
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Re: will my score go up if...

just my experience but i was told to keep mine at 3%. I paid mine from 30% down to 3% and my FAKO scores went  up quite a bit! granted they are FAKO but they did go up.

10/2012-lender pull--TU-536-EQ-556-EX-550
myFICO Pull 8/10/2013--TU-690-EQ-657-EX-640
8/2013 Lender Pull---TU-671--EQ-657---EX-667
New Member
Posts: 9
Registered: ‎06-10-2013
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Re: will my score go up if...

thanks i will take your advise and try it. i'm meeting with my mortgage company next week and i need 2 pts for my loan to go through. Have you heard of rapid rescoring. Should i ask my loan specialist to try it so that the 3% will show?

Established Member
Posts: 23
Registered: ‎10-22-2012
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Re: will my score go up if...

I have heard it mentioned. but i dont know anything about it ;(

10/2012-lender pull--TU-536-EQ-556-EX-550
myFICO Pull 8/10/2013--TU-690-EQ-657-EX-640
8/2013 Lender Pull---TU-671--EQ-657---EX-667
Valued Contributor
Posts: 1,453
Registered: ‎04-14-2012
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Re: will my score go up if...

I can assure you...you will have a much better score at 3% than you will at 30%.

 

Rule of thumb is between 1-9% I have been playing with the numbers over the past few months. 2-3% seems to work great for me.

*8/10/13
Epic Contributor
Posts: 22,406
Registered: ‎01-17-2008
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Re: will my score go up if...

You will see all over the internet and other forums about the utilization.  What works for one may not for another.  But 30% is still too high and is an old idea as to where to keep your utilization. 

 

FICO high achievers (750+) normally have a utilization of about 7%

Valued Contributor
Posts: 2,658
Registered: ‎06-05-2008
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Re: will my score go up if...


guiness56 wrote:  What works for one may not for another.  But 30% is still too high ...

+1  Get it under 9%, and start experimenting; see where your profile get's the best bang.

3-26-15: FICO EXP: 814 - EQU:813 - TRAN: 809 - AVG: 812 +262 points from JUN 2008 - MY CREDIT JOURNAL

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