topic Re: Maxxing FICO score with % util in Understanding FICO® Scoring

Maxxing FICO score with % util

Anonymous — Tue, 23 Jun 2009 02:48:18 GMT

Hello,

I received my first credit card today! (yay!) and my Equifax FICO score increased 46 points! The balance is reporting 0 and for whatever reason there is no credit limit reported at Equifax, but there is at Experian. Anyhow, I am wondering if making a small number of transactions totaling around (9%) which is the required utilization I hear to max your FICO will make that much of a difference being the fact I just got this card.

What I am thinking right now is to make a small number of transactions totaling 9 percent of the total limit, and then paying the bill off immediately. My logic goes that once that 9 percent balance is reported to the beaureas my score will significantly improve again!

BASICALLY I AM ASKING:

higher score with 0 versus 9 percent? Or some percentage?

Thanks for your suggestions.

Justin

Re: Maxxing FICO score with % util

FocusOnFICO — Tue, 23 Jun 2009 02:53:57 GMT

I am new to the proper % to show reporting. Many of the experienced posters here recommend 1-4%. Others have reported dings on their scores for having 0 credit cards reporting a balance. If you have other tls reporting, you may need to consider that. Otherwise, if you pay all but about 1-4% of your charges ahead of you statement cut date, and your card reports on that date, you should be fine. Just remember to pay the rest of the balance before the payment due date, too. Congrats on the first card. You are in the right place to learn the correct strategies to maximize your credit products.

Re: Maxxing FICO score with % util

Anonymous — Tue, 23 Jun 2009 04:09:36 GMT

So is it safe to say that having 1-4 percent on your CC is definitely better than having 0 percent utilization?

Re: Maxxing FICO score with % util

marty56 — Tue, 23 Jun 2009 09:46:17 GMT

For my credit profile EX and EQ likes small util on a single card (1%). TU seems to like 0% util of late. I only loose 3 points on EQ and 6 points on EX vs 15 points on TU so I choose to have 0% report.

IMHO you could try 0% and then try 1% and what the difference is. LOL its way too easy to allow >0% to report.

My credit profile is long history, open mortgage, auto loan and 4 year old major derog of that helps.