topic Re: Best option to boost score in Understanding FICO® Scoring

Best option to boost score

Anonymous — Mon, 08 Feb 2021 19:38:08 GMT

So I just got my wife's utilization down to 3% and her EX FICO is sitting at 753 and I'm a bit jealous and want to get there as well LOL (I'm at 712). My utilization is currently sitting at 14% (or will be in the next week once a couple balances update).

This is what I have for accounts I could reduce utilization on:

Nordstrom card: 28% Utilization (she is actually the owner, I'm just AU)

VS card: 37% utilization

Best Buy card: 100% utilization

So what I'm wondering is, what is hurting me more, overall utilization, or Best Buy at 100%? I can easily payoff VS and Nordstrom but that only gets me to around 10% overall. BB is a 0% interest promo so am kinda wanting to pay that one off last. Will 10% be the next "step" to raise my scores, or do I need to bring BB down a bit as well?

Another thought I had was to have her apply for a CC and then add me as an AU which would bring down utilization (we would keep at at 0% utilization)

Re: Best option to boost score

RSX — Mon, 08 Feb 2021 19:42:57 GMT

if you can easily payoff the VS, then do that

next up is to start lowering the BB - since it is 0%, no rush - with a 712 score you are fine anyway

plus with regular payments on the BB, it will be dropping month over month anyway - you will see score jumps as you pass each threshold

i dont suggest getting another CC just for padding - she will take a new account and inquiry hit, which is not worth it, just to add you as an AU and provide util padding

Re: Best option to boost score

Anonymous — Mon, 08 Feb 2021 19:51:07 GMT

@RSX wrote:
if you can easily payoff the VS, then do that

next up is to start lowering the BB - since it is 0%, no rush - with a 712 score you are fine anyway

plus with regular payments on the BB, it will be dropping month over month anyway - you will see score jumps as you pass each threshold

i dont suggest getting another CC just for padding - she will take a new account and inquiry hit, which is not worth it, just to add you as an AU and provide util padding

Do you get a jump at lowering an individual card's utilization, or just overall utilization?

Re: Best option to boost score

RSX — Mon, 08 Feb 2021 19:59:59 GMT

both

and having a maxed card is never recommended - i suggest starting your monthly payments plus an extra $10-25

even though it is at 0% interest, you should still show the company that you are working on paying it off

Re: Best option to boost score

dragontears — Mon, 08 Feb 2021 20:13:32 GMT

@Anonymous wrote:
@RSX wrote:
if you can easily payoff the VS, then do that

next up is to start lowering the BB - since it is 0%, no rush - with a 712 score you are fine anyway

plus with regular payments on the BB, it will be dropping month over month anyway - you will see score jumps as you pass each threshold

i dont suggest getting another CC just for padding - she will take a new account and inquiry hit, which is not worth it, just to add you as an AU and provide util padding

Do you get a jump at lowering an individual card's utilization, or just overall utilization?

Both.

I let a card report ~85% while total was <5% and lost ~25 points (I think, it was back in October and I don't have the exact number in front of me) as soon as the card reported $0 I got the points back.

In general, total has more weight but individual still matters.

Re: Best option to boost score

Anonymous — Mon, 08 Feb 2021 20:37:20 GMT

@dragontears wrote:
@Anonymous wrote:
@RSX wrote:
if you can easily payoff the VS, then do that

next up is to start lowering the BB - since it is 0%, no rush - with a 712 score you are fine anyway

plus with regular payments on the BB, it will be dropping month over month anyway - you will see score jumps as you pass each threshold

i dont suggest getting another CC just for padding - she will take a new account and inquiry hit, which is not worth it, just to add you as an AU and provide util padding

Do you get a jump at lowering an individual card's utilization, or just overall utilization?
Both.
I let a card report ~85% while total was <5% and lost ~25 points (I think, it was back in October and I don't have the exact number in front of me) as soon as the card reported $0 I got the points back.
In general, total has more weight but individual still matters.

Thanks for the input. That's sort of what I was wondering - which utilization has more weight.

My DW went from 11% util to 3% overall, and 100% util to 29% util on her Nordstrom card and gained 32 points so not completely sure which change affected her more (what a person wouldn't do to know the actual algorith LOL!)

Re: Best option to boost score

Anonymous — Mon, 08 Feb 2021 21:32:51 GMT

Your maxed out card can be impacting your scores 25-30 points in and of itself. Getting below 9.5% overall utilization could be good for 15 or so points. My personal opinion is that the maxed out card is hurting your scores more. If you're riding a 0% promo it more or less is what it is... finances over Fico if that's how you plan to roll for now. You could take down utilization on your other CC if that would allow you to cross that 9.5% overall threshold and you'd also acquire another $0 balance account, which can help scores a few points. The opening of another card option should be eliminated. IMO it's not really fair to ask someone else open a card for the main purpose of you becoming an AU to lower [your] utilization unless it's something they need/want in the first place.

Re: Best option to boost score

SouthJamaica — Mon, 08 Feb 2021 22:45:24 GMT

@Anonymous wrote:
So I just got my wife's utilization down to 3% and her EX FICO is sitting at 753 and I'm a bit jealous and want to get there as well LOL (I'm at 712). My utilization is currently sitting at 14% (or will be in the next week once a couple balances update).

This is what I have for accounts I could reduce utilization on:

Nordstrom card: 28% Utilization (she is actually the owner, I'm just AU)
VS card: 37% utilization
Best Buy card: 100% utilization

So what I'm wondering is, what is hurting me more, overall utilization, or Best Buy at 100%? I can easily payoff VS and Nordstrom but that only gets me to around 10% overall. BB is a 0% interest promo so am kinda wanting to pay that one off last. Will 10% be the next "step" to raise my scores, or do I need to bring BB down a bit as well?

Another thought I had was to have her apply for a CC and then add me as an AU which would bring down utilization (we would keep at at 0% utilization)

Obviously it's the individual account utilization, especially your maxed out Best Buy card, but also to a lesser extent your VS card. It would be preferable to have no cards over 28%.