topic Re: CC Utilization? in Credit Cards

CC Utilization?

notmyname — Tue, 11 Dec 2007 00:36:56 GMT

I think this comes under both overall and individual utility but I can't find the balance so what do you think?

Let's say there are two cards with very large limits running balances up to 65%. You acquire a new card with an equally large limit. If you can take the first two below 50% by BTing 40% to the third is this good? Or, is it better to have one that is simply available but unused credit. There are no other cards in this scenario and the only motive is raising scores.

Thanks for any thoughts,

Re: CC Utilization?

SmartCookie — Tue, 11 Dec 2007 00:40:19 GMT

Absolutely distribute them across all 3 for best UTI before you start paying them down. Goal is under 10% both overall and on each card, with only 2 cards reporting at a time (some say half of all cards, do what you can).

And always try for a CLI on any card that can do so with only a soft INQ beforehand.

Re: CC Utilization?

Anonymous — Tue, 11 Dec 2007 00:43:54 GMT

Now sure exactly how that is going to play out, depending on how many cards you currently have balances on. If those were your nly three cards I would wonder because too many cards reporting balances can ding you as well.

Re: CC Utilization?

notmyname — Tue, 11 Dec 2007 00:49:42 GMT

As I stated, there are no other cards in this scenario.

Thanks,

Re: CC Utilization?

SmartCookie — Tue, 11 Dec 2007 00:58:18 GMT

I think you'd get the most bang for the buck with all 3 reporting at under 50% vs just 2 at at least 65%. UTI greater than over 50% is a new tier of yuk. Lemme see if I can find a thread on that... there is one around if not more.

Then comes a payoff plan depending on how long you think it will take to get it all as close to or under 10% on 2 cards or less.

Re: CC Utilization?

SmartCookie — Tue, 11 Dec 2007 01:05:22 GMT

http://ficoforums.myfico.com/fico/board/message?board.id=ficoscoring&thread.id=10026

This may help some regarding UTI. It's the most recent we have right now from Fair Isaac though it may have changed slightly.

Re: CC Utilization?

notmyname — Tue, 11 Dec 2007 01:13:56 GMT

Then comes a payoff plan depending on how long you think it will take to get it all as close to or under 10% on 2 cards or less.

EQ 787 EX 781 TU 737 11/17/07
11.5k new credit and late pay disputes pending
"People are so full of cr*p

Thanks , Smart Cookie

I have to admit that I am curious to just let them sit there until I see what change the new card causes. It does impact the overall percentages of the CR.

Also ,with a transfer I would be paying down a substantial amount at 0% which is a no brainer. Then as you are suggesting , I just want to pay down and keep it up.

I am in really good shape and just did the biggest thing I expect to do with my credit for the next two years so the way I see it; I have nothing to do but see just how high I can get my scores. I honestly don't even have any dream cards to go after.

A good place to be, I suppose.

Thanks for your help and anyone else,

Message Edited by notmyname on 12-10-2007 07:13 PM

Re: CC Utilization?

fused — Tue, 11 Dec 2007 01:12:23 GMT

notmyname wrote:

I think this comes under both overall and individual utility but I can't find the balance so what do you think?

Let's say there are two cards with very large limits running balances up to 65%. You acquire a new card with an equally large limit. If you can take the first two below 50% by BTing 40% to the third is this good? Or, is it better to have one that is simply available but unused credit. There are no other cards in this scenario and the only motive is raising scores.

Thanks for any thoughts,

RP

Do you know your FICO scores now?

Re: CC Utilization?

notmyname — Tue, 11 Dec 2007 01:19:13 GMT

Yes Fused,

Pulled here in October:

TU 744 EQ 735 EX 744

Re: CC Utilization?

SmartCookie — Tue, 11 Dec 2007 01:22:19 GMT

notmyname wrote:
Yes Fused,

Pulled here in October:

TU 744 EQ 735 EX 744

RP

Doubt there is a FICO loss... you lost a few for the INQ but more than regained with the new TL. Ya ain't got nothing to worry about. Let it alone as you pay it off and save BT fees and a headache. Aim to pay each 2 down to 50 UTI or under equally ASAP then bang away as it suits you You only have one more tier of FICO stardom above you when all scores are at or above 760... you very well may be there now.

Re: CC Utilization?

SmartCookie — Tue, 11 Dec 2007 01:25:10 GMT

notmyname wrote:
Thanks , Smart Cookie
I have to admit that I am curious to just let them sit there until I see what change the new card causes. It does impact the overall percentages of the CR.
Also ,with a transfer I would be paying down a substantial amount at 0% which is a no brainer. Then as you are suggesting , I just want to pay down and keep it up.
I am in really good shape and just did the biggest thing I expect to do with my credit for the next two years so the way I see it; I have nothing to do but see just how high I can get my scores. I honestly don't even have any dream cards to go after.
A good place to be, I suppose.
Thanks for your help and anyone else,
RP

Message Edited by notmyname on 12-10-2007 07:13 PM

Hey, welcome. If you've got a 0% BT offer... hrm... well probably throw all on there that I could and keep throwing it on if I wasn't intending on app'ing for anything soon. This is what good credit is for... taking advantage of the benefits!

Re: CC Utilization?

fused — Tue, 11 Dec 2007 01:25:31 GMT

With your high scores, I agree with SmartCookie's plan.

Re: CC Utilization?

notmyname — Tue, 11 Dec 2007 01:33:11 GMT

Thanks Smart,

As you can see almost all my INQ's tend to fall on EQUIFAX. That seems to be the case here in the southeast.

Thanks for your encouragement and everyone else. I have not had a hard struggle from the bottom like so many, but I have had a tedious time just getting out of the FAIR / GOOD rating. It's a nice place to arrive and then when you think you'll never be able to leave , it becomes a " A Magnificent Obsession ".

Re: CC Utilization?

notmyname — Tue, 11 Dec 2007 01:37:08 GMT

Thank you both,

I was wondering why you didn't think I should use the 0%. Especially since it is on Discover and I don't really have a lot of use for the card. I got it as a utility card in fact.

Thanks again,

Re: CC Utilization?

SmartCookie — Tue, 11 Dec 2007 05:37:40 GMT

notmyname wrote:
Thanks Smart,

As you can see almost all my INQ's tend to fall on EQUIFAX. That seems to be the case here in the southeast.
Thanks for your encouragement and everyone else. I have not had a hard struggle from the bottom like so many, but I have had a tedious time just getting out of the FAIR / GOOD rating. It's a nice place to arrive and then when you think you'll never be able to leave , it becomes a " A Magnificent Obsession ".

RP

EX seems to be taking over just about everything here in the NE, so I'm jealous.

You're work has definitely payed off... you've got some nice scores going on!

Re: CC Utilization?

SmartCookie — Tue, 11 Dec 2007 05:44:30 GMT

notmyname wrote:
Thank you both,
I was wondering why you didn't think I should use the 0%. Especially since it is on Discover and I don't really have a lot of use for the card. I got it as a utility card in fact.
Thanks again,
RP

Sorry if I confused you with what I had said most recently about the 0% BT offer. Re-reading it I can see it can be taken 2 completely different ways.

I am all for using it and would xfer the max to it that I could to save some cash. That's what I meant by reaping the rewards of your good credit... this is a nice earned perk.

Do the math to see if you want to BT to the new card from card 1 and/or card 2 and how much depending on the transaction fee mins and max's if any. And you're welcome.

Re: CC Utilization?

notmyname — Tue, 11 Dec 2007 05:56:11 GMT

It's done ; and I feel more confident that I didn't have to make the decision alone. (which is totally unlike me)

Re: CC Utilization?

SmartCookie — Tue, 11 Dec 2007 06:14:21 GMT

Cool beans!