Established Contributor
cashnocredit
Posts: 929
Registered: ‎07-18-2009
Re: Utilization Theories

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!


 

Yep. I completely agree.

 

It's interesting to speculate how we would be talking about util if FICO Capacity Scores were obtainable by consumers instead of just by lenders. Just because we can't get the scores doesn't mean it, or similar non-public scores aren't a major factor in credit and CLI granting. It seems clear to me that many strategies aimed at low Util are likely ones that produce less than attractive metrics on those other scores.

 

I have reestablished credit over the last couple years
so my moniker is, well, rather out of date.

WM Discover $1800, WF Plat 12k, Chase Freedom Siggy15k, Amex Plat (60k H/B), Citi AA EWMC 25k