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Revelate
Posts: 9,640
Registered: ‎12-30-2011
Re: Utilization Theories
[ Edited ]

algorithmslave wrote:

webhopper wrote:

Hi there!

 

I'm going to step outside the box and state that I don't follow the robotic utilization patterns unless I'm going to be applying for something in that month.  Certainly if the scores are very important and if you want to minimize utilization as a game, then following the utilization pattern of <9% utilization on one card and all other cards reporting a zero balance will give you the desired results.

 

What I do try to do is keep all of my spending on my Amex charge card, which doesn't impact my utilizations.   The benefit to letting a balance report depends on the lender. If your total CL on a card is 4k, and your highest balance ever reported on the card is $350, then why would that creditor or any other creditor be tempted to give you higher limits?

 

If you can show that you use your current lines reponsibly, then you can get higher limits in the future.  Irresponsible behavior such as "maxing out" cards, and missing payments or only paying the minumums should be avoided at all costs.

 

that's my 2 cents worth!


I agree with most of what your saying. There is, however, a minor detail that should be discussed. You mentioned a category on ones CR called "Highest Balance". I would not look to FICO for such answers, assuming you did. I would call one of the big three CB and ask if a lender has access to view that category. My understanding is, lenders do not have access to view that category. 


I'm nearly 100% confident all lenders see the high balance reported on a revolving credit tradeline.  I have seen a credit report pulled from my original auto loan and IIRC it was reported there.  

 

From where is the reference that lenders don't have the ability to view that rather basic piece of information regarding a credit card?  I'll admit I could be mistaken, but this is about as fundamental as the CL on a card; actually, it's nearly identical given the fact for the majority of credit card history, high balance was the limit that was not only reported but also calculated upon in the days before CL's were explicitly stated.

 

Starting Score: EQ 561, TU 567, EX 599* (12/30/11, EX lender pull 12/29/11)
Current Score: EQ 04 673, EQ 8 707, TU 720, EX 702* (09/02/14, EX older)
Goal Score: 700 on EQ '04 (01/01/15)


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