topic Question About Utilization on a Small Credit Line Card in Understanding FICO® Scoring

Question About Utilization on a Small Credit Line Card

Anonymous — Wed, 02 Apr 2008 14:06:32 GMT

Hi,

I understand that it's important to keep utilization low on credit cards in order to boost your FICO scores. I have a question ... I just recently paid off my Ch. 13 bankruptcy (expect my discharge papers sometime in the next month), and I have a small Orchard Bank card ($400 line). Let's say that there is no balance on that card ... does that count just as much (i.e., 0% utilization) on this small balance card, as let's say a much larger line credit card (i.e., $5000) and the utilization on that? Or if and when I can get a $5000 card down the road, does keeping that balance low count more than a small balance card?

Just curious how this works. Thanks!

Re: Question About Utilization on a Small Credit Line Card

Anonymous — Wed, 02 Apr 2008 14:25:44 GMT

As far as UTL is concerned-

$40 on a $400 CL

and

$500 on a $5000 CL

The overall and ind UTL is the same.

Swoosh60 wrote:

Hi,

I understand that it's important to keep utilization low on credit cards in order to boost your FICO scores. I have a question ... I just recently paid off my Ch. 13 bankruptcy (expect my discharge papers sometime in the next month), and I have a small Orchard Bank card ($400 line). Let's say that there is no balance on that card ... does that count just as much (i.e., 0% utilization) on this small balance card, as let's say a much larger line credit card (i.e., $5000) and the utilization on that? Or if and when I can get a $5000 card down the road, does keeping that balance low count more than a small balance card?

Just curious how this works. Thanks!

Re: Question About Utilization on a Small Credit Line Card

Anonymous — Wed, 02 Apr 2008 14:32:28 GMT

Thanks, that's what I was hoping!

Re: Question About Utilization on a Small Credit Line Card

InfinitiG35 — Wed, 02 Apr 2008 14:38:42 GMT

Yeah, it doesn't really matter what the credit limit is... I have two credit cards, one with a $300 CL and the other with a $350 CL. I brought utilization down on both of them from 86% to 7% and you can see what it did for my scores in less than a month (see my signature).

Re: Question About Utilization on a Small Credit Line Card

Anonymous — Wed, 02 Apr 2008 14:46:58 GMT

Wow, that's great. Thanks for the responses!