topic Re: Aggregate Utilization vs. Single CC Utilization in Understanding FICO® Scoring

Aggregate Utilization vs. Single CC Utilization

fsalsa2 — Mon, 18 Jan 2021 09:48:56 GMT

Hey FICO forums. Just paid off my USAA Platinum Visa, it's my oldest credit card and it's always had a balance as far as I can remember for the last 4 years I've had it. I did pay it off now and it has a credit limit of $4,000. I guess I have three questions that I want to get some input on but just want to give a little context. I also just paid off a closed account with citi with a balance of $2171. It was opened fraudulently but was still making my Experian report look bad. Lastly, I have a Navy Federal Visa Signature go rewards card with a: $8,525 balance. It is now the only card with utilization. Here are my questions:

1. Since the citi card was closed and now the balance is paid in full, will it significantly heal/change my credit score significantly on Experian?

2. Should I ask for a balance increase with USAA even though I've had 3 late payments with them with the last two being 2 years ago?

3. The reason I am asking for a balance transfer is because I want to figure out whether I want to balance transfer some of the balance onto my platinum card since the interest rate is at 4% versus the 17% that is currently on my Navy card? However, the USAA finally has a zero balance for the first time in its lifetime so I am unsure how to proceed. Current scores and limits are in my signature. Thanks all!

Re: Aggregate Utilization vs. Single CC Utilization

Brian_Earl_Spilner — Mon, 18 Jan 2021 15:22:34 GMT

If you're not planning to apply for credit anytime soon, stop worrying about your scores and do what makes financial sense.

Re: Aggregate Utilization vs. Single CC Utilization

SouthJamaica — Mon, 18 Jan 2021 15:41:36 GMT

@fsalsa2 wrote:
Hey FICO forums. Just paid off my USAA Platinum Visa, it's my oldest credit card and it's always had a balance as far as I can remember for the last 4 years I've had it. I did pay it off now and it has a credit limit of $4,000. I guess I have three questions that I want to get some input on but just want to give a little context. I also just paid off a closed account with citi with a balance of $2171. It was opened fraudulently but was still making my Experian report look bad. Lastly, I have a Navy Federal Visa Signature go rewards card with a: $8,525 balance. It is now the only card with utilization. Here are my questions:
1. Since the citi card was closed and now the balance is paid in full, will it significantly heal/change my credit score significantly on Experian?

Yes it will help that the balance is gone.

2. Should I ask for a balance increase with USAA even though I've had 3 late payments with them with the last two being 2 years ago?

Only if it's a soft pull, not if it's a hard pull. I'm guessing it would be denied, but if it's a soft pull you have nothing to lose.

3. The reason I am asking for a balance ~~transfer~~ [increase] is because I want to figure out whether I want to balance transfer some of the balance onto my platinum card since the interest rate is at 4% versus the 17% that is currently on my Navy card? However, the USAA finally has a zero balance for the first time in its lifetime so I am unsure how to proceed. Current scores and limits are in my signature. Thanks all!

I guess it's worth paying the balance transfer fee to get such a big reduction in interest. But if you're concerned about your credit scores in the near term, be wary of using more than 28% of the credit limit on the USAA card for the balance transfer. And don't make any purchases with the card until the balance transfer balance is paid off.

Re: Aggregate Utilization vs. Single CC Utilization

fsalsa2 — Mon, 18 Jan 2021 18:05:42 GMT

Thank you so much for the advice!