topic Re: 7% vs 30% utilization in Credit Cards

7% vs 30% utilization

mademan0890 — Thu, 31 Aug 2023 17:47:11 GMT

Does it really make a difference as to which is better for your credit score? Right now my only credit card is at a 18% UTL. I know too stay well beneath 30%. Is it going to help if I bring it down more?

Re: 7% vs 30% utilization

markbeiser — Thu, 31 Aug 2023 17:56:39 GMT

You will get a small bump up in scores if you go below 10%, especially if every individual card is lower than that.

Re: 7% vs 30% utilization

FireMedic1 — Thu, 31 Aug 2023 20:21:20 GMT

Everyone has a sweet spot. For myself playing around. 6% is the good place.

Re: 7% vs 30% utilization

coldworld — Thu, 31 Aug 2023 20:57:17 GMT

As I was paying down super high util, I saw big score jumps when I paid a card below 10%

Re: 7% vs 30% utilization

RSX — Thu, 31 Aug 2023 21:49:06 GMT

5% and lower makes a big difference in my score

** Under 30% is such a rough guide - it is basically the bare minimum so that people have a goal**

definitely each step below 30 makes a difference

Re: 7% vs 30% utilization

titancylinder — Thu, 31 Aug 2023 23:16:33 GMT

@mademan0890 wrote:
Does it really make a difference as to which is better for your credit score? Right now my only credit card is at a 18% UTL. I know too stay well beneath 30%. Is it going to help if I bring it down more?

Huge difference for me. When interest rates were lower, I would routinely keep a 50% utilization across the board. Not because I couldn't afford to pay it off but because I leveraged my money. However, when I paid everything down under 6% my credit score jumped 100 points almost. I usually hovered around 680. After paying the debt nearly off I hover around 760-780 (F8) My F8 bank card score is 790.

I think the importance varies on your goals though. If your comfortable carrying the debt, can pay it off if needed, and you're not getting any kind of AA, so be it.

Re: 7% vs 30% utilization

dlister70 — Fri, 01 Sep 2023 00:02:29 GMT

Several years ago, I saw someone post about "known scoring thresholds". I can't find the original thread anymore, but I saved the numbers and have believed it to be true since then. It could have just been someone saying things that didn't know any better, but the thread made me believe that these were actual numbers used to determine FICO scores.

I share them with you now, for whatever that is worth.

Known scoring thresholds are at 8.9%, 28.9%, 48.9%, 68.9%, and 88.9%

I can say for certain that I saw a FICO increase when I went below 48.9% on one of my balance transfer cards, but did not see any significant change when it was at like 49.5%. I remember one payment got it down to 49.5%, so I was like "testing out" these numbers. And I did see a score jump once I paid it below the 48.9% the next month. Perhaps there were other factors at work with my other cards though, so that's not exactly scientific data.

Re: 7% vs 30% utilization

Thomas_Thumb — Fri, 01 Sep 2023 00:34:22 GMT

@mademan0890 wrote:
Does it really make a difference as to which is better for your credit score? Right now my only credit card is at a 18% UTL. I know too stay well beneath 30%. Is it going to help if I bring it down more?

Probably not as long as aggregate revolving utilization is currently under 9% (or 5% for some profiles). The important thresholds for an individual cards are under 29%, under 49% and not maxing out a card (80% and above).

I never saw a point drop on a card utilization basis at any level between 1% and 29% - as long as aggregate utilization was under 9%. Of course, increasing # of cards with balances can impact score.

You should definitely test lower card utilizations yourself and report your findings.

Re: 7% vs 30% utilization

Shooting-For-800 — Fri, 01 Sep 2023 02:34:15 GMT

Everyone is different.

I doubt it is a 10 point difference for well established credit.

For lower credit scores, it may make more of an impact.

Score fluctuate.

you want to be under 29% if possible.

GL!

Re: 7% vs 30% utilization

Blender — Fri, 01 Sep 2023 13:54:27 GMT

@dlister70 wrote:
Several years ago, I saw someone post about "known scoring thresholds". I can't find the original thread anymore, but I saved the numbers and have believed it to be true since then. It could have just been someone saying things that didn't know any better, but the thread made me believe that these were actual numbers used to determine FICO scores.

I share them with you now, for whatever that is worth.

Known scoring thresholds are at 8.9%, 28.9%, 48.9%, 68.9%, and 88.9%

I can say for certain that I saw a FICO increase when I went below 48.9% on one of my balance transfer cards, but did not see any significant change when it was at like 49.5%. I remember one payment got it down to 49.5%, so I was like "testing out" these numbers. And I did see a score jump once I paid it below the 48.9% the next month. Perhaps there were other factors at work with my other cards though, so that's not exactly scientific data.

Thanks for posting this, gonna test those numbers this month.

Re: 7% vs 30% utilization

SouthJamaica — Fri, 01 Sep 2023 14:58:17 GMT

@mademan0890 wrote:
Does it really make a difference as to which is better for your credit score? Right now my only credit card is at a 18% UTL. I know too stay well beneath 30%. Is it going to help if I bring it down more?

Since you only have 1 card, your individual card utilization is the same as your aggregate utilization.

With aggregate utilization, my experience has been that it's better if it's 6% or lower.

With individual card utilization, my experience has been that as long as it's 28% or lower it's ok.

Bottom line, I do believe you would get an increase for going down to 7%.

Re: 7% vs 30% utilization

SouthJamaica — Fri, 01 Sep 2023 15:00:06 GMT

@dlister70 wrote:
Several years ago, I saw someone post about "known scoring thresholds". I can't find the original thread anymore, but I saved the numbers and have believed it to be true since then. It could have just been someone saying things that didn't know any better, but the thread made me believe that these were actual numbers used to determine FICO scores.

I share them with you now, for whatever that is worth.

Known scoring thresholds are at 8.9%, 28.9%, 48.9%, 68.9%, and 88.9%

I can say for certain that I saw a FICO increase when I went below 48.9% on one of my balance transfer cards, but did not see any significant change when it was at like 49.5%. I remember one payment got it down to 49.5%, so I was like "testing out" these numbers. And I did see a score jump once I paid it below the 48.9% the next month. Perhaps there were other factors at work with my other cards though, so that's not exactly scientific data.

In my opinion it was indeed "someone saying things that didn't know any better".

Re: 7% vs 30% utilization

Thomas_Thumb — Fri, 01 Sep 2023 15:19:57 GMT

@SouthJamaica wrote:
@mademan0890 wrote:
Does it really make a difference as to which is better for your credit score? Right now my only credit card is at a 18% UTL. I know too stay well beneath 30%. Is it going to help if I bring it down more?
Since you only have 1 card, your individual card utilization is the same as your aggregate utilization.

With aggregate utilization, my experience has been that it's better if it's 6% or lower.

With individual card utilization, my experience has been that as long as it's 28% or lower it's ok.

Bottom line, I do believe you would get an increase for going down to 7%.

**bleep**! I didn't pick up on the fact the OP only had one credit card. Then, as mentioned, individual = aggregate and lower utilizations come into play for aggregate.

The OP should consider getting another card or two.

Re: 7% vs 30% utilization

Blender — Thu, 07 Sep 2023 00:40:06 GMT

@SouthJamaica wrote:
@dlister70 wrote:
Several years ago, I saw someone post about "known scoring thresholds". I can't find the original thread anymore, but I saved the numbers and have believed it to be true since then. It could have just been someone saying things that didn't know any better, but the thread made me believe that these were actual numbers used to determine FICO scores.

I share them with you now, for whatever that is worth.

Known scoring thresholds are at 8.9%, 28.9%, 48.9%, 68.9%, and 88.9%

I can say for certain that I saw a FICO increase when I went below 48.9% on one of my balance transfer cards, but did not see any significant change when it was at like 49.5%. I remember one payment got it down to 49.5%, so I was like "testing out" these numbers. And I did see a score jump once I paid it below the 48.9% the next month. Perhaps there were other factors at work with my other cards though, so that's not exactly scientific data.
In my opinion it was indeed "someone saying things that didn't know any better".

@dlister70 well, for whst its worth, seems i got +4 going down to 68.9%

im sure I could test out all the levels being I'm on 0% until then, but I'm feeling like going to below 9% is gonna help me for a new WF app

Re: 7% vs 30% utilization

OpenBook55 — Thu, 07 Sep 2023 01:40:39 GMT

off personal experience I thought I was in the clear since my overall util was at 6-7%. My new Chase card report at 70% (small credit limit) I saw a 10pt drop on FICO and over 30 point drop on FAKO. I said I will def try my best to never let that happen again..

I also rememeber that thread referenced below and when I paid off alot of debt earlier this year I saw significant increases at each of those benchmarks..

@Blender wrote:
@dlister70 wrote:
Several years ago, I saw someone post about "known scoring thresholds". I can't find the original thread anymore, but I saved the numbers and have believed it to be true since then. It could have just been someone saying things that didn't know any better, but the thread made me believe that these were actual numbers used to determine FICO scores.

I share them with you now, for whatever that is worth.

Known scoring thresholds are at 8.9%, 28.9%, 48.9%, 68.9%, and 88.9%

I can say for certain that I saw a FICO increase when I went below 48.9% on one of my balance transfer cards, but did not see any significant change when it was at like 49.5%. I remember one payment got it down to 49.5%, so I was like "testing out" these numbers. And I did see a score jump once I paid it below the 48.9% the next month. Perhaps there were other factors at work with my other cards though, so that's not exactly scientific data.
Thanks for posting this, gonna test those numbers this month.

Re: 7% vs 30% utilization

SouthJamaica — Thu, 07 Sep 2023 15:53:39 GMT

@Blender wrote:
@SouthJamaica wrote:
@dlister70 wrote:
Several years ago, I saw someone post about "known scoring thresholds". I can't find the original thread anymore, but I saved the numbers and have believed it to be true since then. It could have just been someone saying things that didn't know any better, but the thread made me believe that these were actual numbers used to determine FICO scores.

I share them with you now, for whatever that is worth.

Known scoring thresholds are at 8.9%, 28.9%, 48.9%, 68.9%, and 88.9%

I can say for certain that I saw a FICO increase when I went below 48.9% on one of my balance transfer cards, but did not see any significant change when it was at like 49.5%. I remember one payment got it down to 49.5%, so I was like "testing out" these numbers. And I did see a score jump once I paid it below the 48.9% the next month. Perhaps there were other factors at work with my other cards though, so that's not exactly scientific data.
In my opinion it was indeed "someone saying things that didn't know any better".

@dlister70 well, for whst its worth, seems i got +4 going down to 68.9%
im sure I could test out all the levels being I'm on 0% until then, but I'm feeling like going to below 9% is gonna help me for a new WF app

You don't know that your 4 point gain was attributable to that.

Re: 7% vs 30% utilization

SouthJamaica — Thu, 07 Sep 2023 16:01:00 GMT

@OpenBook55 wrote:
off personal experience I thought I was in the clear since my overall util was at 6-7%. My new Chase card report at 70% (small credit limit) I saw a 10pt drop on FICO and over 30 point drop on FAKO. I said I will def try my best to never let that happen again..

I also rememeber that thread referenced below and when I paid off alot of debt earlier this year I saw significant increases at each of those benchmarks..
@Blender wrote:
@dlister70 wrote:
Several years ago, I saw someone post about "known scoring thresholds". I can't find the original thread anymore, but I saved the numbers and have believed it to be true since then. It could have just been someone saying things that didn't know any better, but the thread made me believe that these were actual numbers used to determine FICO scores.

I share them with you now, for whatever that is worth.

Known scoring thresholds are at 8.9%, 28.9%, 48.9%, 68.9%, and 88.9%

I can say for certain that I saw a FICO increase when I went below 48.9% on one of my balance transfer cards, but did not see any significant change when it was at like 49.5%. I remember one payment got it down to 49.5%, so I was like "testing out" these numbers. And I did see a score jump once I paid it below the 48.9% the next month. Perhaps there were other factors at work with my other cards though, so that's not exactly scientific data.
Thanks for posting this, gonna test those numbers this month.

Why don't you also test going in between those supposed thresholds? In my experience, there are no aggregate utilizations "thresholds". If you go from 70% to 69% you gain, but you also gain if you go from 69% to 68% and so on. The "thresholds" in the post to which everyone refers were never properly tested and are basically urban legend. Which is why I declined the invitation to be considered a co-author of that post, because the authors were putting things out there that simply aren't so. I guess it gives people comfort to think there are known "thresholds" since it gives them something to shoot for. But I prefer reality.

IMHO, the only true thresholds in revolving utilization are in individual card utilization, and the only ones I'm sure of in that department are 29% and 49%, and of course the dreaded "max" threshold of 89%.

Re: 7% vs 30% utilization

GatorCowboyLion — Sat, 09 Sep 2023 14:27:23 GMT

I usually only use one card that has 25k limit, and have 5 others that I keep at 0. I can see a significant difference when I get up to 7k vs 2k on that card. There is about a fluctuation of up to 10 points that consistently correlates to my CC balance. So I always keep my aggregate utilization below 10%, but even still there is score fluctuation based on that one card. For what it's worth, Experian will say on their website to pay down that card. They also say, "Most FICO High Achievers owe less than $2,500 on revolving and/or open-ended accounts such as credit cards" and "For FICO High Achievers, the average ratio [aggregate] is less than 7%." I tend to trust Experian and the trends that I've seen on my credit.

Re: 7% vs 30% utilization

Taurus22 — Sun, 10 Sep 2023 17:27:01 GMT

@dlister70

I read the same thread a while back. I'm thinking it might have been something AimHigh posted, can't be certain. But the following text was directly taken from that thread and I made myself a Wordpad note as a reference, back when I was building and learning.

Credit Utilization Scoring Thresholds below are benchmarks for FICO 8.

Remember these aggregate utilization thresholds: 8.9%, 28.9%, 48.9%, 68.9%, 88.9%
Remember these individual utilization thresholds: 28.9%, 48.9%, 68.9%, 88.9%

If you're not crossing a threshold, you won't be getting points.

Aggregate: 10-15 points for aggregate crossing a threshold.

Individual: ~5 points points for individual crossing a threshold.

All Zero Except One card reporting a small balance e.g. $5-$10. Use a bank card. Do not use a store card.