topic Re: 1% UTL better than 9% or same? in Credit Cards

1% UTL better than 9% or same?

NikoD — Sat, 01 Mar 2014 18:40:52 GMT

I'm new to learning about FICO scoring so I have a question about how utilization factors into the scoring. I've read here that below 10% is best but does that mean that for scoring purposes it doesn't matter if it is 1% or 9%, just as long as it's below 10%. After you get below 10% is further lowering better for the score? Also, is 0% bad because it looks like the credit isn't even being used?

Re: 1% UTL better than 9% or same?

blondy250 — Sat, 01 Mar 2014 18:45:01 GMT

@NikoD wrote:
I'm new to learning about FICO scoring so I have a question about how utilization factors into the scoring. I've read here that below 10% is best but does that mean that for scoring purposes it doesn't matter if it is 1% or 9%, just as long as it's below 10%. After you get below 10% is further lowering better for the score? Also, is 0% bad because it looks like the credit isn't even being used?

Its usually less then 10%, but its different for everyone based on there individual credit profile. Its of course less then 10% reporting on only 1 card, and yes reporting zero isn't the best idea.

Re: 1% UTL better than 9% or same?

Gunnar419 — Sat, 01 Mar 2014 19:35:25 GMT

@blondy250 wrote:
@NikoD wrote:
I'm new to learning about FICO scoring so I have a question about how utilization factors into the scoring. I've read here that below 10% is best but does that mean that for scoring purposes it doesn't matter if it is 1% or 9%, just as long as it's below 10%. After you get below 10% is further lowering better for the score? Also, is 0% bad because it looks like the credit isn't even being used?
Its usually less then 10%, but its different for everyone based on there individual credit profile. Its of course less then 10% reporting on only 1 card, and yes reporting zero isn't the best idea.

+1 Everybody has their own sweet spot, usually somewhere between 1% and 9% on one card and only that one card reporting, but we have to experiment to find out where our personal sweet spot is.

Unless you're really into fine tuning your score, though, having overall util of 10% is darned good.

Re: 1% UTL better than 9% or same?

gdale6 — Sat, 01 Mar 2014 19:36:36 GMT

@Gunnar419 wrote:
@blondy250 wrote:
@NikoD wrote:
I'm new to learning about FICO scoring so I have a question about how utilization factors into the scoring. I've read here that below 10% is best but does that mean that for scoring purposes it doesn't matter if it is 1% or 9%, just as long as it's below 10%. After you get below 10% is further lowering better for the score? Also, is 0% bad because it looks like the credit isn't even being used?
Its usually less then 10%, but its different for everyone based on there individual credit profile. Its of course less then 10% reporting on only 1 card, and yes reporting zero isn't the best idea.
+1 Everybody has their own sweet spot, usually somewhere between 1% and 9% on one card and only that one card reporting, but we have to experiment to find out where our personal sweet spot is.

Unless you're really into fine tuning your score, though, having overall util of 10% is darned good.

You need to experiment with the percentages to find your sweet spot.

Re: 1% UTL better than 9% or same?

Anonymous — Sat, 01 Mar 2014 19:47:51 GMT

OP, there is a lot of discussion on this and similar subjects in the Understanding FICO Scoring thread.

Re: 1% UTL better than 9% or same?

juggalo9er — Sat, 01 Mar 2014 19:52:15 GMT

the question i would have would be what would be a ballpark score increase from 21% util down to say 3% on only 1 card with two others reporting 0

Re: 1% UTL better than 9% or same?

twist7d7 — Sat, 01 Mar 2014 19:55:29 GMT

Now is that 1-9% of total credit cards? or just on the card that is reporting?

Re: 1% UTL better than 9% or same?

juggalo9er — Sat, 01 Mar 2014 19:57:59 GMT

just on one card...scores with 21% are in my sig

Re: 1% UTL better than 9% or same?

twist7d7 — Sat, 01 Mar 2014 20:08:13 GMT

so on my 800 discover it i can only have it report 72 and the month that i use BCE (2k) i can have it report 180? or can i have the discover or the BCE report 252? i always PIF

Re: 1% UTL better than 9% or same?

avv7c0 — Sat, 01 Mar 2014 22:30:19 GMT

In that last situation, you'd be penalized for having balances on multiple cards.

Re: 1% UTL better than 9% or same?

twist7d7 — Sat, 01 Mar 2014 23:01:10 GMT

@avv7c0 wrote:
In that last situation, you'd be penalized for having balances on multiple cards.

only one card would report a balance in thos situations. i was asking how much ballance i could report.

Re: 1% UTL better than 9% or same?

avv7c0 — Sat, 01 Mar 2014 23:24:42 GMT

Oh sorry, I didn't see the "or" for the 252 balance. The 1-9% is total util across all cards, but you'll also want to ensure that whichever card you report that the $252 for example is not more than the individual FICO threshold for a single card. I think you see a score drop at 40%, 60% and 90%, but these are just generalities based on what we see... Not set in stone.

Also, as stated, everyone has their own sweet spot for their unique credit profile. I have to keep my reported balance at 11% in order to see the best score. My score drops with anything below that. So you'll have to experiment.

Re: 1% UTL better than 9% or same?

twist7d7 — Sun, 02 Mar 2014 00:46:36 GMT

@avv7c0 wrote:
Oh sorry, I didn't see the "or" for the 252 balance. The 1-9% is total util across all cards, but you'll also want to ensure that whichever card you report that the $252 for example is not more than the individual FICO threshold for a single card. I think you see a score drop at 40%, 60% and 90%, but these are just generalities based on what we see... Not set in stone.

Also, as stated, everyone has their own sweet spot for their unique credit profile. I have to keep my reported balance at 11% in order to see the best score. My score drops with anything below that. So you'll have to experiment.

This is going to kill me. i wish credit was simple

Re: 1% UTL better than 9% or same?

takeshi74 — Sun, 02 Mar 2014 04:08:55 GMT

It is fairly simple: 30% max, ~10% ideal. Instead of relying on specific balances keep the percentages in mind.

Re: 1% UTL better than 9% or same?

Anonymous — Sun, 02 Mar 2014 21:33:35 GMT

As other posters on this thread have stated, it is unique to each of us. I have experimented and my best amount is 1.5% based on a thick file. Why, I don't know but over two years of playing with it keeps on yielding the same amount of utilization generates my highest scores. It is certainly possible this will change as my file changes. There is a lot written about FICO buckets and utilization on this website. You may want to explore other threads. In my reading there is an amount of utilization that yields the highest scores. For me it has been validated.

Re: 1% UTL better than 9% or same?

Anonymous — Sun, 02 Mar 2014 23:02:28 GMT

Might depend on what bucket you're in.

I think it's fallacious to assume that there are magic "right" values for FICO scoring events.

Re: 1% UTL better than 9% or same?

HiLine — Sun, 02 Mar 2014 22:56:48 GMT

I don't know where the sweet spot concept comes from. 1% is better than 9% period.

Re: 1% UTL better than 9% or same?

-Wade- — Sun, 02 Mar 2014 22:59:06 GMT

@NikoD wrote:
I'm new to learning about FICO scoring so I have a question about how utilization factors into the scoring. I've read here that below 10% is best but does that mean that for scoring purposes it doesn't matter if it is 1% or 9%, just as long as it's below 10%. After you get below 10% is further lowering better for the score? Also, is 0% bad because it looks like the credit isn't even being used?

@i get my best score @1%