topic Re: Help with Utilization Plan in Credit Cards

Help with Utilization Plan

securingourfuture — Sat, 06 Jun 2015 15:12:47 GMT

As of today, my total utilization is <5%. I expect that number to go up as everything reports this month, but it definitely will not top 9%. This morning, I got an Experian alert that my score increased 10 points after one of my cards dropped from 74% to 0% utilization due to a BT. This got me thinking and put me in planning mode, and I need help from you guys here.

Here is my situation:

May 2015
67.7% Ashley Furniture (4.5 y/o AU acct)
74% SSCU
12.4% JCP
6.5% PayPal MasterCard
<1% CAP 1 QS1
9.6% Walmart
10.3% Macy's revolving
0.3% Lowes
41% PFCU (reporting w/ balance on TU only - I began paying this card before statement cut back in April, and it hasn't generated a statement to TU since March 18th. This month, I'm letting it report $2 to get the TU utilization down.)

June 2015
63% Ashley Furniture - payoff by 12/2015
0% SSCU
0% JCP
0% PayPal MasterCard
0% CAP 1 QS1
8.9% CAP 1 Venture 1 @ 0% Daily card with full payoff by 4/2016 (keep util <9%)
6.4% Walmart @ 0% payoff by 4/2016
0% Macy's revolving
83.7% Macy's special event @ 0% payoff by 4/2016
42% Barclays (BT of SSCU/JCP @ 0%) payoff within 15 months
3.6% Lowes @ 0% payoff within 18 months
0.2% PFCU (PIF after reporting)
1.6% Babies R Us (PIF after reporting)

The only reported item for June so far is the SSCU card.

AAofA approximately 3 years
Oldest account 14 years, 9 months

Is this a good plan that will keep my scores rising while I'm gardening?? Do you think the BT and Macy's Special Event accounts (84%!!) will offset the 10 points I just gained from dropping the 74% to 0%? I know the AU account is high, but I'm actually helping to pay on it, it's almost 5 y/o, and it will have a 0 balance within 6 months.

Thanks in advance!

Re: Help with Utilization Plan

Anonymous — Sat, 06 Jun 2015 15:35:21 GMT

The high utilization on the Macy's card probably will cause a score drop. My suggestion though if you are gardening and not planning on applying for anything new, is to focus on repayment and not your scores. Your scores, if they drop, will rise overtime as you pay down the balances. Pay down the cards that have the highest interest first and then the 0% ones

Re: Help with Utilization Plan

securingourfuture — Sat, 06 Jun 2015 15:48:08 GMT

@Anonymous wrote:
The high utilization on the Macy's card probably will cause a score drop. My suggestion though if you are gardening and not planning on applying for anything new, is to focus on repayment and not your scores. Your scores, if they drop, will rise overtime as you pay down the balances. Pay down the cards that have the highest interest first and then the 0% ones

That's great advice. That Macy's one is ugh, but at least it's at 0% for a year.

Thank you so much!

Re: Help with Utilization Plan

Anonymous — Sat, 06 Jun 2015 15:49:32 GMT

@securingourfuture wrote:
@Anonymous wrote:
The high utilization on the Macy's card probably will cause a score drop. My suggestion though if you are gardening and not planning on applying for anything new, is to focus on repayment and not your scores. Your scores, if they drop, will rise overtime as you pay down the balances. Pay down the cards that have the highest interest first and then the 0% ones
That's great advice. That Macy's one is ugh, but at least it's at 0% for a year.

Thank you so much!

You're very welcome and good luck.

Re: Help with Utilization Plan

securingourfuture — Sat, 06 Jun 2015 21:01:35 GMT

@Anonymous wrote:
@securingourfuture wrote:
@Anonymous wrote:
The high utilization on the Macy's card probably will cause a score drop. My suggestion though if you are gardening and not planning on applying for anything new, is to focus on repayment and not your scores. Your scores, if they drop, will rise overtime as you pay down the balances. Pay down the cards that have the highest interest first and then the 0% ones
That's great advice. That Macy's one is ugh, but at least it's at 0% for a year.

Thank you so much!
You're very welcome and good luck.

Another great thing is Macy's will combine limits in July and that will bring my Macy's utilization to 35.8%.

Re: Help with Utilization Plan

Anonymous — Sat, 06 Jun 2015 21:23:43 GMT

@securingourfuture wrote:
@Anonymous wrote:
@securingourfuture wrote:
@Anonymous wrote:
The high utilization on the Macy's card probably will cause a score drop. My suggestion though if you are gardening and not planning on applying for anything new, is to focus on repayment and not your scores. Your scores, if they drop, will rise overtime as you pay down the balances. Pay down the cards that have the highest interest first and then the 0% ones
That's great advice. That Macy's one is ugh, but at least it's at 0% for a year.

Thank you so much!
You're very welcome and good luck.
Another great thing is Macy's will combine limits in July and that will bring my Macy's utilization to 35.8%.

That certainly will help. Never good to have 80+% utilization. Shouldn't however affect you in the long run as long as you gradually pay it back.