topic Re: Overall utilization threshold? in Understanding FICO® Scoring

Overall utilization threshold?

Zoostation1 — Sun, 02 Mar 2025 19:54:31 GMT

Since August 2024 I've been flatlined at 698 on my TU8 score. Yesterday I got a notification of a 1pt increase to 699, but for the live of me can't figure out what the cause is. I know it's not worth diving into, but I'm wondering if there's utilization threshold on TU8 that I'm not aware of.

For the entire time that I've been at 698 I've been letting 3/6 cards report (my profile contains nothing but revolvers), none have exceeded any of the known or suspected utilization thresholds for individual/overall. My reported utilization overall has fluctuated from ~5.7-8.5% during this time, but now due to a CLI that reported late last month is right at 5% . I didn't think there was any sort of threshold at 5% but wondering if maybe there is?

Other info that may or not be relevant - 2/23 I had a HP added on TU for a new NFCU account which made me 2/12 for inquiries. Last app and new account prior was 4/12/24, dirty profile with a 7yr4mo old BK7. 1pt is trivial, but I'm always interested in figuring out more details on what causes movement of any sorts in scoring.

Re: Overall utilization threshold?

FicoMike0 — Sun, 02 Mar 2025 22:10:38 GMT

I believe there is a suspected threshold at 5% agg. May depend on scorecard.

With only revolvers, have you considered a ssl? Got me 30-40 points.

Re: Overall utilization threshold?

Zoostation1 — Mon, 03 Mar 2025 03:51:30 GMT

I have considered it, and at one point thought maybe doing a NFCU SSL would be a good idea, but I'm no longer planning to go that route. I backed off the SSL idea after burning through a significant chunk of savings to use as an unplanned down payment on a car (totaled my car last October). I'm gradually building my savings back up, and while some is locked up in certificates, the remainder I want to keep in accounts that can be easily liquified if necessary .

Re: Overall utilization threshold?

FicoMike0 — Mon, 03 Mar 2025 16:52:04 GMT

You do need some upfront cash for ssl, but you get it all back in 30+ days. I think you can get it back quicker with navy. If you go with penfed, it's about half as much as navy. $1500 for 60 months, I did 84 for $2100.

I only mentioned it because you seem to be close to crossing from under 700 to 720+ territory. Then again, it's just a number until you want to app something.

Sorry about the car.

Re: Overall utilization threshold?

hdporter — Thu, 06 Mar 2025 00:30:23 GMT

Fretting a 1 pt change has no constructive value other than possibly adding a new worry line to your forehead (assuming that's a goal).

Aging of delinquencies, tradelines, or inquiries all can have a modest impact. Attempting to attribute a small score change to any factor is subject to great uncertainty and mostly pointless.

Attempting to micromanage your credit score is a fool's errand (trust me, that was my quest 25 years ago!)

Focus on the big picture that drives your score: avoid delinquencies, keep card balances below 30% util and overall util below 10%, and apply for credit only when it holds reasonable promise of a SIGNIFICANT return.

Re: Overall utilization threshold?

SRT4kid93 — Thu, 06 Mar 2025 01:31:43 GMT

I know when you go to the utilization section and click on the question mark for more information, it says

"fico high achievers have below 7% util on average"

so maybe there's a very small difference when you fall below 7%? Fico seems to hold the 7% figure in high regard.

Re: Overall utilization threshold?

Junejer — Fri, 07 Mar 2025 21:04:18 GMT

@Zoostation1 wrote:
Since August 2024 I've been flatlined at 698 on my TU8 score. Yesterday I got a notification of a 1pt increase to 699, but for the live of me can't figure out what the cause is. I know it's not worth diving into, but I'm wondering if there's utilization threshold on TU8 that I'm not aware of.

For the entire time that I've been at 698 I've been letting 3/6 cards report (my profile contains nothing but revolvers), none have exceeded any of the known or suspected utilization thresholds for individual/overall. My reported utilization overall has fluctuated from ~5.7-8.5% during this time, but now due to a CLI that reported late last month is right at 5% . I didn't think there was any sort of threshold at 5% but wondering if maybe there is?

Other info that may or not be relevant - 2/23 I had a HP added on TU for a new NFCU account which made me 2/12 for inquiries. Last app and new account prior was 4/12/24, dirty profile with a 7yr4mo old BK7. 1pt is trivial, but I'm always interested in figuring out more details on what causes movement of any sorts in scoring.

I don't know what could've caused a one-point change. Edit: mistakenly read your BK7 to drop off soon. Forgot those things are 10 years, not seven. Sorry.

Re: Overall utilization threshold?

Thomas_Thumb — Sat, 08 Mar 2025 15:34:38 GMT

@SRT4kid93 wrote:
I know when you go to the utilization section and click on the question mark for more information, it says

"fico high achievers have below 7% util on average"

so maybe there's a very small difference when you fall below 7%? Fico seems to hold the 7% figure in high regard.

High achievers is rather useless information with no correlation to scoring metric thresholds. It is what it says, an average. That average fluctuates yearly.

Re: Overall utilization threshold?

Zoostation1 — Sat, 08 Mar 2025 20:47:51 GMT

@hdporterI'm not fretting it, nor do I micromanage scores (I refuse to do AZEO again unless I was applying for a loan typically let my 3 primary cards report balances naturally). I just like digging into the details, however inconsequential they may be. My score will drop soon enough from a new card that hasn't reported yet but will rebound with time.