topic Re: Individual Utilization data point in Understanding FICO® Scoring

Individual Utilization data point

radfam — Thu, 21 Mar 2019 21:02:35 GMT

So I have been actively paying down CC utilization and monitoring my progress very intently. I have a data point that I'd like to share. I had high (85-99%) utl on three CCs in December. By late February/early March, I had paid one card down to $1 ($0 but I caught an interest charge the day it reported, figures). The second card, I brought down to 11%. The third card was sitting at 45%. My overall utl was at 18%.

Today, I got an alert that card #3 had reported a balance decrease. I was expecting this, as I paid it down to 27% last week. I have also paid off card #2 but it won't update until 4/1. My overall utl went down to 13% with card #3 updating today.

What I was not expecting was the score change. I got 0 pt increase on EX and EQ, and 1pt on TU. I realize that I did not pass any utl thresholds for my overall utl scoring. I did, however, pass one threshold on card #3. I am hopeful to see more score increases as card 1 reports $0, card 2 reports $0, and card 2 reports at 27%. I guess I'm just a bit surprised that I got 1 tiny point increase on 1b for passing a threshold on an individual card, and goose eggs for the other 2b.

FWIW, no other changes that I can tell have occurred on my report, except aging 1 month. I literally review my reports multiple times daily on Experian, to monitor for changes. I also subscribe to MF 3b+, so a monthly refresh. I have seen large score gains by going from high utl to low, and I keep seeing people say that the biggest increase is usually at AZEO with 1 at <8%. I hope that is true for me. Anyway, I just wanted to provide a data point for anyone who gathers them.

Re: Individual Utilization data point

expatCanuck — Thu, 21 Mar 2019 22:03:41 GMT

It could be that time is needed. For whatever reason, I've found that a score change isn't always synchronous with the event(s) causing the change. There's often a delay.

I believe this to be the case because the FICO powers-that-be are puckish s.o.b.'s with twisted, sick little senses of humour.

Re: Individual Utilization data point

Anonymous — Fri, 22 Mar 2019 02:17:39 GMT

Nice work chipping away at that utilization.

You said that you started with 3 high/near maxed out CCs, but I'm not sure you stated what your original aggregate utilization was?

I'm just curious how much your scores have improved in crossing what I believe is 3 aggregate utilization thresholds, with of course 3 highest individual card thresholds being crossed as well.

Re: Individual Utilization data point

radfam — Fri, 22 Mar 2019 02:24:38 GMT

I went back and found the post where I started tracking! I was slightly under quoting on the utilization’s in this OP. Here are what my individuals and overall were in December. My signature is current for scores and increases.

Cap1: $1424 of 1600 SL (89% utl)
Disc: $1115 of 1200 SL (93% utl)
Amex: $857 of 1000 SL (86% utl)

Total over: $3396 of 3800 SL (89% utl)

Important to note, when I paid down a chunk on the Disco, they gave a CLI. So my SL went from $1200 > $2300 in early Feb. So mid paydown, I got a buffer from 29% down to 17% on the remaining balance for that card, which was great!

Re: Individual Utilization data point

xaximus — Fri, 22 Mar 2019 19:42:40 GMT

Generally, I've noticed when paying down balances, it takes anywhere between 30-60 days to fully reflect on your reports. This takes in the time in when the statement is generated, when your balances are reported, and any current balances/interest, etc. I think the general idea is that once you pay down balances, give it 30-60 days and you should be able to see the difference in your scores. Especially in your case where you've dropped several thresholds and also got a CLI. Since your scores are dropping 4-5 thresholds, I would estimate you'll get anywhere between 50-100 points to your score. Then again, it's a guesstimate on what you may or may not get, but I would be more inclined to say, you should see a boost of at least 50+.

Re: Individual Utilization data point

NRB525 — Sun, 24 Mar 2019 10:49:00 GMT

Congrats on the pay down of the balances. That is good work.

I presume these balance amounts are statement balances, correct?

Do do you have any baddies in your file?

Re: Individual Utilization data point

SouthJamaica — Sun, 24 Mar 2019 15:00:32 GMT

@radfam wrote:
So I have been actively paying down CC utilization and monitoring my progress very intently. I have a data point that I'd like to share. I had high (85-99%) utl on three CCs in December. By late February/early March, I had paid one card down to $1 ($0 but I caught an interest charge the day it reported, figures). The second card, I brought down to 11%. The third card was sitting at 45%. My overall utl was at 18%.

Today, I got an alert that card #3 had reported a balance decrease. I was expecting this, as I paid it down to 27% last week. I have also paid off card #2 but it won't update until 4/1. My overall utl went down to 13% with card #3 updating today.

What I was not expecting was the score change. I got 0 pt increase on EX and EQ, and 1pt on TU. I realize that I did not pass any utl thresholds for my overall utl scoring. I did, however, pass one threshold on card #3. I am hopeful to see more score increases as card 1 reports $0, card 2 reports $0, and card 2 reports at 27%. I guess I'm just a bit surprised that I got 1 tiny point increase on 1b for passing a threshold on an individual card, and goose eggs for the other 2b.

FWIW, no other changes that I can tell have occurred on my report, except aging 1 month. I literally review my reports multiple times daily on Experian, to monitor for changes. I also subscribe to MF 3b+, so a monthly refresh. I have seen large score gains by going from high utl to low, and I keep seeing people say that the biggest increase is usually at AZEO with 1 at <8%. I hope that is true for me. Anyway, I just wanted to provide a data point for anyone who gathers them.

1. It takes time. Just keep up the good work.

2. I don't think monitoring Experian multiple times a day is a good use of your time; I've had the service for around 5 months now, and I'm pretty sure it updates only once a day.

Re: Individual Utilization data point

radfam — Sun, 24 Mar 2019 17:18:16 GMT

Thanks everyone.