Regular Contributor
EandK23
Posts: 178
Registered: ‎09-12-2012
Yet another UTL question

I recently went on an app spree which brought my total CL to $27K.  I'm trying to capitalize CB rewards and am planning to start mortgage shopping in 9 months. In hindsight, I know I shouldn't have gone on my app spree but at the time, I didn't know we'd be shopping for a mortgage so soon. I am officially in the garden until then. 

 

With that said, I know I'll take a hit on INQ and AAoA. So, I'm looking for some advice on UTL...  I know that I should let only 1 card post a balance but what if the reported balance is only 1-2%?  Is that bad?  I rotate my cards to capitalize on CB rewards. Also, does it matter what card should report? Amex vs. Discover vs. Chase?  Also, should it always be the same card to report? 

 

Sorry for the slew of questions....  I know time is the best remedy for my app spree but it did help my credit portfolio by increasing my CL and getting rid of FP. I'm trying to minimize the hit on my score and manage my UTL appropriately. 

Established Contributor
bettercreditguy1
Posts: 738
Registered: ‎02-11-2012
Re: Yet another UTL question

The recent inquiries and new credit will ding your score for a year or so. As to which card "reports" it does not matter. The formula is mathmatical, not product oriented.Best if possible to go into a no new credit mode for a year or more before apping for a mortage. As far as maximizing your score, I wouldn't be too concerned on how many credit cards show a balance on your report at this time. When you get ready to purchase your house, then focus on only having one or two cc's report a couple of months or so before you app so your score will be nearer the top.

Starting scores 01/02/2012 EQ 707(Fico) TU 733(Fico) EXP 735 (FAKO)
Updated scores 06/01/2014 EQ 797(Fico) TU 768(Fico) EXP 769 (Fico)


Remember the Three P's: Pay early in Full, Pay on Time, Patience
Regular Contributor
EandK23
Posts: 178
Registered: ‎09-12-2012
Re: Yet another UTL question
Excellent! Thank you for your sound advice!
Moderator Emeritus
llecs
Posts: 32,880
Registered: ‎08-04-2007
Re: Yet another UTL question

Ditto. We just say to keep one under 9% of the CL to max out score. But so as long as the balances aren't reporting high for a prolonged period of time whereby the creditor worries, and provided you aren't apping for anything, then any score ding is temporary provided the balances go back down. No permanent damage.

 

I'll also add you can max out the rewards without letting a balance report. Just use the CCs and PIF before the statement cuts.

Regular Contributor
EandK23
Posts: 178
Registered: ‎09-12-2012
Re: Yet another UTL question

Great! Thank you llecs. I'm hoping it will be temporary as well. None of my balances will report high and I'll always pay in full. I really don't spend a lot but I like the idea of getting some CB for everyday spending.  No new tradelines for me! 

Valued Contributor
my-own-fico
Posts: 1,122
Registered: ‎01-05-2010
Re: Yet another UTL question

llecs wrote:

 

We just say to keep one under 9% of the CL to max out score.


 

Don't be surprised if one day out of the blue I quote you for this one. :smileytongue: :smileywink:

 

Moderator Emeritus
llecs
Posts: 32,880
Registered: ‎08-04-2007
Re: Yet another UTL question

  ^^^^^  Looks like you already did! :smileysurprised: