Moderator Emeritus
Brammy
Posts: 5,436
Registered: ‎03-10-2007
Re: How maxed out cards affect your FICO
[ Edited ]


LadyFICO wrote:
First off congrats I am new to the forum as far as writing goes. Brammy according to calculations you went from max on one card and paid it and got 15 another said he paid 2 cards down to under 20  and got 17 points I'm not sure where the person was maxed to begin with or whether FICO allows huge jumps per cc. If it does I just paid 10 cards down below 25% all at their max. I am optimistic about wishing to gain 15 points per card which would immediately put me at my goal but based on what others have said sometimes paying all to soon doen't necessarily give you that big boost. Any suggestions?



Maxing out even one card can cause a huge decrease in your FICO score it looks as ifyou're living beyond your means (using cards to live on). My increase came in one month.  he card wasn't even actually maxed out it was just reporting high balance and no credit limit.  Don't worry you will get a boost maybe not 15 points a card but maybe so. 
 
Before I learned how the program worked, I thought that as long as I kept my card from going overlimit and paid on time, my scores would increase, its only from places like this and a little research that I learned the TRUE rules of the game.
 
I'll put it like this, in the beginning I had one subprime card that was consistently over 50% though I paid on time and never minimum.  I only got offers on other subprimes cards. When that card ratejacked me due top a mistake on my CR I got mad and paid it off with the intention of closing it. Within a month of bringing the utilization down on that card under 10% I started to get offers from near prime lenders.  All the time I thought I was getting subprime offers simply due to my BK.
 
I started taking them up and closed the subprime card and suddenly got limits higher than I ever thought possible.  The last online approval was so far out of my expectations that I shouted an expletive when I logged into the account after approval and saw my limit. I even called the card company and asked if they were sure about the limit even though I could see it right there on my computer screen:smileyvery-happy:
 
For me, reducing utilization not only took me out of subprime territory but put me in the position to get some nice prime offers.


Message Edited by Brammy on 04-13-2007 08:11 AM

Message Edited by Brammy on 04-13-2007 08:12 AM