topic Re: CC Util Question for Mods in Credit Cards

CC Util Question for Mods

Uniqua — Fri, 07 Nov 2008 16:42:29 GMT

Background:
I currently have 3 CCs, all of which were open in June of 2008.

Current Balances/CL/Statement Drop Date:

WaMu - $524.18 $2,000 11/25

AEFCU - $236.17 $500 11/28-11/30

HFCU - $155.41 $1,000 11/11-11/13

Objective:

WaMu - Pay $300.00 (leaving $224.18 to post on statement)

AEFCU - Pay $236.17 (leaving $0 to post on statement)

HFCU - Pay $60.00 (letting $95.41 post on statement)

This will make my util 9%, correct?

Scenario:

Want to purchase a PS3 for my son tomorrow at Walmart using WaMu CC (unfortunately, I can only get it with the $100 gift card tomorrow only). I'm coming up on my 6th statement with WaMu on 11/25. Wondering if I would jeopardize my FICO scores by letting a larger balance on my WaMu CC report (if, in fact, I gain FICO points for 6-month anniversary - not sure how true this is?). If I purchase the PS3 ($422.94 including tax) and let that balance report with the $224.18 (totaling $647.12) and bringing my util to 21%, will I risk a FICO score drop for this? I plan on making a huge payment on 11/28, but have some items I need to pay off first.

I'm thinking I should just forfeit the $100 gift card (sweet offer) and look for another offer later, but I really don't want to pass this up. Hope I made sense. Your help is greatly appreciated.

FICOs as of 9/5/08 - TU 710 EQ 700 EX 698

Message Edited by Uniqua on 11-07-2008 11:42 AM

Re: CC Util Question for Mods

Uniqua — Fri, 07 Nov 2008 18:02:06 GMT

Thanks to Cheddar (on another post of mine), I think I have part of my answer.

As far as FICO and six-month anniversary, it is true that my scores may increase for this?

Re: CC Util Question for Mods

Anonymous — Fri, 07 Nov 2008 18:07:43 GMT

You're more than welcome. I just saw this thread, so I didn't reposnd to it earlier.

Yes, your utilization would be 9% after the payments.

If I calculate correctly, it looks like after your big purchase, the WaMu card will only be reporting an individual utilization in the low 30s. (I forgot the exact number and don't want to re-run the calculation, but I seem to remember it was 32%?)

That's really not so bad. I wouldn't worry about letting low 30s utilization report on a single card for only 30 days, even if it did cost a few points temporarily.

Remember that ultimately, you want your FICO score to be high so that you can obtain and use the credit you want and need. Why bother worrying about a high FICO score if it's giong to prevent you from making reasonable use of the credit you've obtained?

Just my $0.02.

Message Edited by cheddar on 11-07-2008 10:07 AM

Re: CC Util Question for Mods

MidnightVoice — Fri, 07 Nov 2008 18:13:24 GMT

@Uniqua wrote:
CC Util Question for Mods

Sorry, I am not a Mod so I can't answer

Re: CC Util Question for Mods

Anonymous — Fri, 07 Nov 2008 18:20:21 GMT

MidnightVoice wrote:
@Uniqua wrote:
CC Util Question for Mods
Sorry, I am not a Mod so I can't answer

As if my answer could be improved on?!?!?!

Re: CC Util Question for Mods

Uniqua — Fri, 07 Nov 2008 18:21:21 GMT

You're right, Cheddar. That's what I'm "trying" to do. Still getting the hang of this since I'm just starting to rebuild this year. I guess my concern is that I'm in the market to purchase a home, then a new car. I don't want high util to report at all. I've been trying very hard to prevent this so that I wouldn't suffer a score drop. I just made it over 700 and my CU has already stated that if I can keep my current CC balances low, my scores will increase, making it better for me as far as interest rates.

I've decided to go for this deal at Walmart. Just don't know how I can pass it up. Instead of the $300 payment, I'm going to pay $500 so that by the time my WaMu statement cuts, my balance will be $347.12 (making this CC util 17% and overall util 13%). If you can figure out how I came up with those numbers, please -- somebody tell me!

Re: CC Util Question for Mods

MidnightVoice — Fri, 07 Nov 2008 18:23:54 GMT

@Anonymous wrote:

As if my answer could be improved on?!?!?!

It could not, oh Mighty Moderator

Re: CC Util Question for Mods

Anonymous — Fri, 07 Nov 2008 18:28:33 GMT

In that case, if saving $100 on a PlayStation is going to cause problems with a mortgage application, I'd say forget about the $100 and get the PlayStation some other time.

Re: CC Util Question for Mods

Uniqua — Fri, 07 Nov 2008 18:49:27 GMT

I don't think it's necessarily about saving $100, but rather letting such a huge balance report on my CR. As I stated, it's already high ($524.18, adding $422.94 to it = $947.12). The $300 payment would have brought it down to $647.12, which is still high and I would not have been able to get it paid down by 11/25. My CL is only $2k. Sounds like a score drop to me, just wasn't sure. From what I hear around here, it will take a while to get those points back. I've been trying not to app for new credit and just gardening the new credit I already have.

I don't know about other people nor do I even care, but for me, I would much rather be in a better position when I apply for a mortgage. I am simply not happy where I am now and I am going to make sure my credit only gets better, and that includes my scores!

Re: CC Util Question for Mods

jmbfl — Fri, 07 Nov 2008 20:07:30 GMT

If you can, pay the two non-WaMu accounts down to zero and pay whatever else you can on the WaMu account. (Having less that half your revolving TL's reporting a balance will increase your FICO scores.) Go ahead and make your purchase and then pay whatever you can later in the month (to WaMu).

A FICO score only exists at the exact moment your credit report is pulled. Since you are not intending to apply for credit at this time you have little to worry about. Keep focused on the long run and don't cut things too finely. Micro-management will drive you nuts.

Your scores are already hovering around 700. Do not anticipate seeing a large bump at the six month point. The higher your scores are, the less bump you will see. (In fact sometimes when positive changes in your CBR's occur that cause a bucket change your FICO score can actually decrease!)

P.S. I am not a mod. Just a mere mortal poster.

Message Edited by jmbfl on 11-07-2008 12:07 PM

Re: CC Util Question for Mods

My2cents — Fri, 07 Nov 2008 20:10:17 GMT

Hi Uniqua

Sorry so late. That would be 9% utilization. And that's not so bad. You should also watch your pfico as it is an indicator as well.

Your Friend

My2cents

Re: CC Util Question for Mods

Uniqua — Fri, 07 Nov 2008 20:29:02 GMT

@jmbfl wrote:
If you can, pay the two non-WaMu accounts down to zero and pay whatever else you can on the WaMu account. (Having less that half your revolving TL's reporting a balance will increase your FICO scores.) Go ahead and make your purchase and then pay whatever you can later in the month (to WaMu).

A FICO score only exists at the exact moment your credit report is pulled. Since you are not intending to apply for credit at this time you have little to worry about. Keep focused on the long run and don't cut things too finely. Micro-management will drive you nuts.

Your scores are already hovering around 700. Do not anticipate seeing a large bump at the six month point. The higher your scores are, the less bump you will see. (In fact sometimes when positive changes in your CBR's occur that cause a bucket change your FICO score can actually decrease!)
P.S. I am not a mod. Just a mere mortal poster.
Message Edited by jmbfl on 11-07-2008 12:07 PM

I didn't think of paying off the other two CCs. At this point, I don't think another payment on the HFCU CC will be posted before the statement drops, so that $95.41 bal may just have to post. The AEFCU CC statement won't drop until 11/28 so that gives me plenty of time to pay it off. I've decided to pay cash and CC to get the PS3.

I had been purchasing my FICOs each month up until recently when I decided to buy them every 60-days to see where I am. So, this month makes the 60-day mark and I was actually planning on buying them. After reading your post, I've decided against that. It'll probably upset me if I see a drop -- wait, it WILL upset me! I'll really be looking to obtain a mortgage come the new year anyway.

I have a major derog getting ready to fall off. Should I be rebucketed and my FICOs decrease, I'm gonna have to pay Mr. Isaac a visit. He had better have his boxing gloves on!

Re: CC Util Question for Mods

Uniqua — Fri, 07 Nov 2008 20:41:44 GMT

@My2cents wrote:
Hi Uniqua

Sorry so late. That would be 9% utilization. And that's not so bad. You should also watch your pfico as it is an indicator as well.

Your Friend
My2cents

*sigh* Thanx, but I see that you just don't want to drop the pfico thing, huh? Ok, just to make you laugh again - that PFICO is PJUNK and when is Chase going to throw it in the PGARBAGE cause I want to get it out of my PFACE!

Did you smile? You are so PSILLY!

Re: CC Util Question for Mods

jmbfl — Fri, 07 Nov 2008 20:42:16 GMT

Assuming you are rebucketed to a higher/better bucket the bad news is your score could drop a bit - the good news is the ceiling your score can rise to is increased. In the long run being rebucketed to a better bucket is quite to your benefit! Rebucketing is just another one of those situations where watching that FICO score too closely can be maddening!

Rather that buying all three scores every month consider a monitoring service. I have both TC and SW and in combination they are good. I have no lack of information and can get a score other that EQ by purchase if I really feel the need. (I did need to buy EX twice this month due to a problem I was having with AMEX. I might not buy another EX score for 6 months to a year. But if something effects my EX CBR I will know it right away!)

Re: CC Util Question for Mods

Anonymous — Fri, 07 Nov 2008 22:55:37 GMT

@Uniqua wrote:
Background:
I currently have 3 CCs, all of which were open in June of 2008.

Current Balances/CL/Statement Drop Date:
WaMu - $524.18 $2,000 11/25
AEFCU - $236.17 $500 11/28-11/30
HFCU - $155.41 $1,000 11/11-11/13

Objective:
WaMu - Pay $300.00 (leaving $224.18 to post on statement)
AEFCU - Pay $236.17 (leaving $0 to post on statement)
HFCU - Pay $60.00 (letting $95.41 post on statement)

This will make my util 9%, correct?

I just want to point out since I don't see that anyone has mentioned this yet - doesn't utilization percentage matter for BOTH Total and individual card limits?

With the above scenario, the utilization percentages are:

WaMu: 224.18/2000 = 11.2%

AEFCU: 0/500 = 0%

HFCU: 95.41/1000 = 9.5%

Total: 319.59/3500 = 9.1%

So the WaMu's individual card limit would be over 10% utilized.

Also, if I am remembering correctly, FICO always "rounds up" so both the HFCU and Total utilization would be counted as 10% as well, so this may not be as fully optimized as you'd like.

(not a Mod but can still calculate percentages)