topic Re: Credit Card Utilization from 65% to 25% Utilization. in Understanding FICO® Scoring

Credit Card Utilization from 65% to 25% Utilization.

yodi2007 — Sun, 23 Jan 2022 01:43:22 GMT

I recently paid my cards overall utilization from 65% (13050) to 25% (3300). Realistically how many points will my FICO 2,4,5 grow by? I have 3 cards that are not under 30% Utilization. One is 1800/3000, another 262/1000, and the last one is 1450/3500. The other 7 are 0-21 usd balance.

Re: Credit Card Utilization from 65% to 25% Utilization.

SouthJamaica — Sun, 23 Jan 2022 02:28:56 GMT

@yodi2007 wrote:
I recently paid my cards overall utilization from 65% (13050) to 25% (3300). Realistically how many points will my FICO 2,4,5 grow by? I have 3 cards that are not under 30% Utilization. One is 1800/3000, another 262/1000, and the last one is 1450/3500. The other 7 are 0-21 usd balance.

I don't know. In my profile it would probably be worth 25 to 40 points or so in the mortgage scores. But I can tell you that (a) the more zero balances, the better, for your mortgage scores, and (b) a recent test I ran suggests that the number of accounts with 50% or greater individual utilization is a big factor. So my advice to you is to let all but those 3 report zero balances, and to get that $1800 balance down to $1400.

Re: Credit Card Utilization from 65% to 25% Utilization.

yodi2007 — Sun, 23 Jan 2022 03:24:54 GMT

@SouthJamaica wrote:
@yodi2007 wrote:
I recently paid my cards overall utilization from 65% (13050) to 25% (3300). Realistically how many points will my FICO 2,4,5 grow by? I have 3 cards that are not under 30% Utilization. One is 1800/3000, another 262/1000, and the last one is 1450/3500. The other 7 are 0-21 usd balance.
I don't know. In my profile it would probably be worth 25 to 40 points or so in the mortgage scores. But I can tell you that (a) the more zero balances, the better, for your mortgage scores, and (b) a recent test I ran suggests that the number of accounts with 50% or greater individual utilization is a big factor. So my advice to you is to let all but those 3 report zero balances, and to get that $1800 balance down to $1400.

Thanks for the info! Does this work for store cards to like BB?

Re: Credit Card Utilization from 65% to 25% Utilization.

SouthJamaica — Sun, 23 Jan 2022 15:00:12 GMT

@yodi2007 wrote:
@SouthJamaica wrote:
@yodi2007 wrote:
I recently paid my cards overall utilization from 65% (13050) to 25% (3300). Realistically how many points will my FICO 2,4,5 grow by? I have 3 cards that are not under 30% Utilization. One is 1800/3000, another 262/1000, and the last one is 1450/3500. The other 7 are 0-21 usd balance.
I don't know. In my profile it would probably be worth 25 to 40 points or so in the mortgage scores. But I can tell you that (a) the more zero balances, the better, for your mortgage scores, and (b) a recent test I ran suggests that the number of accounts with 50% or greater individual utilization is a big factor. So my advice to you is to let all but those 3 report zero balances, and to get that $1800 balance down to $1400.
Thanks for the info! Does this work for store cards to like BB?

Yes.

Except that the 3 cards you're using to report a non-zero balance shouldn't all be store cards.

Re: Credit Card Utilization from 65% to 25% Utilization.

yodi2007 — Mon, 24 Jan 2022 05:03:25 GMT

@SouthJamaica wrote:
@yodi2007 wrote:
@SouthJamaica wrote:
@yodi2007 wrote:
I recently paid my cards overall utilization from 65% (13050) to 25% (3300). Realistically how many points will my FICO 2,4,5 grow by? I have 3 cards that are not under 30% Utilization. One is 1800/3000, another 262/1000, and the last one is 1450/3500. The other 7 are 0-21 usd balance.
I don't know. In my profile it would probably be worth 25 to 40 points or so in the mortgage scores. But I can tell you that (a) the more zero balances, the better, for your mortgage scores, and (b) a recent test I ran suggests that the number of accounts with 50% or greater individual utilization is a big factor. So my advice to you is to let all but those 3 report zero balances, and to get that $1800 balance down to $1400.
Thanks for the info! Does this work for store cards to like BB?
Yes.

Except that the 3 cards you're using to report a non-zero balance shouldn't all be store cards.

Here's what my cards are atm.

Cards not paid yet

Dell Financial (open date 4/2021) =1450/3000 (0% for 24 months)

Paypal Credit (open date 10/2021)= 1800/3500 (0% for 24 months)

First Premier Mastercard (open date 1/2020) = 20/700 (24%)(Instructed to leave a small balance so I wouldn't get charged a fee)

Bestbuy Storecard (open date 3/2020) =260/1000

Cards paid with zero balance

Navy Federal Visa (open date 2/2019) = 1200/2000 (17.99%)(Paid another 1150 hasn't posted yet takes 3-4 days to do so)

USAA Visa (open date 2/2018) = 0/250 (17%, Secured Card)

Walmart Store Card (open date 4/2019) = 0/300 (24%)

Sams Club store card (open date 4/2019)= 0/100 (was 1500 but for some reason they lowered it several times in 2020)

Credit One AMEX (open date 3/2020) = 0/700 (24%)

AMEX Bluecash (open date 6/2021)= 0/1000 (17%, Wife's Credit Card, piggy backing on her card)

Credit One Visa (open date 1/2020) = 0/600 (25%)

Re: Credit Card Utilization from 65% to 25% Utilization.

SouthJamaica — Mon, 24 Jan 2022 14:42:36 GMT

@yodi2007 wrote:
@SouthJamaica wrote:
@yodi2007 wrote:
@SouthJamaica wrote:
@yodi2007 wrote:
I recently paid my cards overall utilization from 65% (13050) to 25% (3300). Realistically how many points will my FICO 2,4,5 grow by? I have 3 cards that are not under 30% Utilization. One is 1800/3000, another 262/1000, and the last one is 1450/3500. The other 7 are 0-21 usd balance.
I don't know. In my profile it would probably be worth 25 to 40 points or so in the mortgage scores. But I can tell you that (a) the more zero balances, the better, for your mortgage scores, and (b) a recent test I ran suggests that the number of accounts with 50% or greater individual utilization is a big factor. So my advice to you is to let all but those 3 report zero balances, and to get that $1800 balance down to $1400.
Thanks for the info! Does this work for store cards to like BB?
Yes.

Except that the 3 cards you're using to report a non-zero balance shouldn't all be store cards.
Here's what my cards are atm.

Cards not paid yet
Dell Financial (open date 4/2021) =1450/3000 (0% for 24 months)
Paypal Credit (open date 10/2021)= 1800/3500 (0% for 24 months)
First Premier Mastercard (open date 1/2020) = 20/700 (24%)(Instructed to leave a small balance so I wouldn't get charged a fee)
Bestbuy Storecard (open date 3/2020) =260/1000

Cards paid with zero balance
Navy Federal Visa (open date 2/2019) = 1200/2000 (17.99%)(Paid another 1150 hasn't posted yet takes 3-4 days to do so)
USAA Visa (open date 2/2018) = 0/250 (17%, Secured Card)
Walmart Store Card (open date 4/2019) = 0/300 (24%)
Sams Club store card (open date 4/2019)= 0/100 (was 1500 but for some reason they lowered it several times in 2020)
Credit One AMEX (open date 3/2020) = 0/700 (24%)
AMEX Bluecash (open date 6/2021)= 0/1000 (17%, Wife's Credit Card, piggy backing on her card)
Credit One Visa (open date 1/2020) = 0/600 (25%)

The PayPal account should be kept at 1600 or less.

Some advice you didn't ask for: you don't need subprime cards, since you have some good stuff in there. If I were you I would immediately ditch that First Premier card. Then someday start looking at ditching Credit One.

Re: Credit Card Utilization from 65% to 25% Utilization.

sjt — Mon, 24 Jan 2022 22:47:04 GMT

@yodi2007 wrote:
I recently paid my cards overall utilization from 65% (13050) to 25% (3300). Realistically how many points will my FICO 2,4,5 grow by? I have 3 cards that are not under 30% Utilization. One is 1800/3000, another 262/1000, and the last one is 1450/3500. The other 7 are 0-21 usd balance.

What were your scores when it was 65% utilization?

Re: Credit Card Utilization from 65% to 25% Utilization.

yodi2007 — Tue, 25 Jan 2022 01:19:45 GMT

@sjt wrote:
@yodi2007 wrote:
I recently paid my cards overall utilization from 65% (13050) to 25% (3300). Realistically how many points will my FICO 2,4,5 grow by? I have 3 cards that are not under 30% Utilization. One is 1800/3000, another 262/1000, and the last one is 1450/3500. The other 7 are 0-21 usd balance.
What were your scores when it was 65% utilization?

FICO 8 Scores: Equifax=630, Transunion=603, Experian=649

Mortgage Scores: Equifax=620, Transunion=603, Experian=575

I really need my middles score to go up so I can apply with my broker with confidence!

Re: Credit Card Utilization from 65% to 25% Utilization.

sjt — Tue, 25 Jan 2022 22:48:05 GMT

@yodi2007 wrote:
@sjt wrote:
@yodi2007 wrote:
I recently paid my cards overall utilization from 65% (13050) to 25% (3300). Realistically how many points will my FICO 2,4,5 grow by? I have 3 cards that are not under 30% Utilization. One is 1800/3000, another 262/1000, and the last one is 1450/3500. The other 7 are 0-21 usd balance.
What were your scores when it was 65% utilization?

FICO 8 Scores: Equifax=630, Transunion=603, Experian=649
Mortgage Scores: Equifax=620, Transunion=603, Experian=575
I really need my middles score to go up so I can apply with my broker with confidence!

My guess is your score will increase by 50 points. Even higher if you only have one card with a balance and your utilization is below 8.9%

Re: Credit Card Utilization from 65% to 25% Utilization.

yodi2007 — Wed, 26 Jan 2022 03:52:28 GMT

@sjt wrote:
@yodi2007 wrote:
@sjt wrote:
@yodi2007 wrote:
I recently paid my cards overall utilization from 65% (13050) to 25% (3300). Realistically how many points will my FICO 2,4,5 grow by? I have 3 cards that are not under 30% Utilization. One is 1800/3000, another 262/1000, and the last one is 1450/3500. The other 7 are 0-21 usd balance.
What were your scores when it was 65% utilization?

FICO 8 Scores: Equifax=630, Transunion=603, Experian=649
Mortgage Scores: Equifax=620, Transunion=603, Experian=575
I really need my middles score to go up so I can apply with my broker with confidence!
My guess is your score will increase by 50 points. Even higher if you only have one card with a balance and your utilization is below 8.9%

Thanks for the reply! I'll apply next week after I can run an updated FICO credit score.

Re: Credit Card Utilization from 65% to 25% Utilization.

Feisarr — Fri, 28 Jan 2022 02:54:21 GMT

Can you explain the First Premier fee? Seems crazy that they charge a fee for paying off your balance.

Re: Credit Card Utilization from 65% to 25% Utilization.

yodi2007 — Fri, 28 Jan 2022 03:24:59 GMT

@Feisarr wrote:
Can you explain the First Premier fee? Seems crazy that they charge a fee for paying off your balance.

Someone noted somewhere that they charge a fee for not carrying a balance on the card. I just do it because it was suggested.

Re: Credit Card Utilization from 65% to 25% Utilization.

yodi2007 — Fri, 28 Jan 2022 03:32:23 GMT

@Feisarr wrote:
Can you explain the First Premier fee? Seems crazy that they charge a fee for paying off your balance.

What is your projection of my mortgage scores going up?

Re: Credit Card Utilization from 65% to 25% Utilization.

expatCanuck — Sun, 30 Jan 2022 16:48:40 GMT

@yodi2007 wrote:
@Feisarr wrote:
Can you explain the First Premier fee? Seems crazy that they charge a fee for paying off your balance.
Someone noted somewhere that they charge a fee for not carrying a balance on the card. I just do it because it was suggested.

First Premier's fees are unclear at best. And they are plentiful. I'd echo @SouthJamaica's advice to lose that card, unless you truly need it. And. based on your other cards, @yodi2007, I don't think you do.

https://wallethub.com/d/first-premier-credit-card-594c

Re: Credit Card Utilization from 65% to 25% Utilization.

yodi2007 — Mon, 31 Jan 2022 02:40:59 GMT

Update to Fico 2,5,4 scores! Paid for a new report.

Experian: 575 to 578

Transunion: 613 to 648

Equifax: 620 to 656

Applied for a mortgage and was denied through automatic underwriting, but it is going through manual underwriting through the broker's underwriter. Will post later results when they have returned.

Re: Credit Card Utilization from 65% to 25% Utilization.

mgood — Tue, 01 Feb 2022 00:26:08 GMT

@yodi2007 wrote:
Update to Fico 2,5,4 scores! Paid for a new report.
Experian: 575 to 578
Transunion: 613 to 648
Equifax: 620 to 656

Applied for a mortgage and was denied through automatic underwriting, but it is going through manual underwriting through the broker's underwriter. Will post later results when they have returned.

Congrats on pushing the score up a little. Good luck with the mortgage.

Re: Credit Card Utilization from 65% to 25% Utilization.

SouthJamaica — Tue, 01 Feb 2022 05:43:38 GMT

@yodi2007 wrote:
Update to Fico 2,5,4 scores! Paid for a new report.
Experian: 575 to 578
Transunion: 613 to 648
Equifax: 620 to 656

Applied for a mortgage and was denied through automatic underwriting, but it is going through manual underwriting through the broker's underwriter. Will post later results when they have returned.

Your all important middle score went up 35 points. Congratulations.

Re: Credit Card Utilization from 65% to 25% Utilization.

yodi2007 — Wed, 02 Feb 2022 00:54:10 GMT

@expatCanuck wrote:
@yodi2007 wrote:
@Feisarr wrote:
Can you explain the First Premier fee? Seems crazy that they charge a fee for paying off your balance.
Someone noted somewhere that they charge a fee for not carrying a balance on the card. I just do it because it was suggested.
First Premier's fees are unclear at best. And they are plentiful. I'd echo @SouthJamaica's advice to lose that card, unless you truly need it. And. based on your other cards, @yodi2007, I don't think you do.

https://wallethub.com/d/first-premier-credit-card-594c

UPDATE:

I didn't qualify for the mortgage because my chapter 13 was discharged in Dec 2021. Everything else was great they said, I just to have to wait one full year.

Re: Credit Card Utilization from 65% to 25% Utilization.

yodi2007 — Thu, 03 Feb 2022 04:47:14 GMT

@yodi2007 wrote:
@expatCanuck wrote:
@yodi2007 wrote:
@Feisarr wrote:
Can you explain the First Premier fee? Seems crazy that they charge a fee for paying off your balance.
Someone noted somewhere that they charge a fee for not carrying a balance on the card. I just do it because it was suggested.
First Premier's fees are unclear at best. And they are plentiful. I'd echo @SouthJamaica's advice to lose that card, unless you truly need it. And. based on your other cards, @yodi2007, I don't think you do.

https://wallethub.com/d/first-premier-credit-card-594c
UPDATE:
I didn't qualify for the mortgage because my chapter 13 was discharged in Dec 2021. Everything else was great they said, I just to have to wait one full year.

Update #2:

This same lender called me back today and states they will continue with underwriting as there was some confusion about my Chapter 13 and thought I just started it. Awaiting for their response.

Got 2 pre-approvals today from lenders and both offer no origination fees and 995 funding fee. They also offer competative Intrest @ 3.375% and 3.37%. I will wait to see what the other Broker comes up with.