topic Re: Magic Utilization #? in Understanding FICO® Scoring

Magic Utilization #?

Anonymous — Wed, 19 Aug 2009 21:01:56 GMT

Two credit cards- we've kept them both at or about 7-12% utilization..... no credit score movement. Then we paid one to 0, left the other at about 9%... no move. Is there a ideal # to keep them at????

Thanks!

Re: Magic Utilization #?

smallfry — Wed, 19 Aug 2009 21:32:29 GMT

Chances are your utilization wasn't bad enough to begin with in your bucket for a tweak like you executed to matter. How old is yourt oldest reporting account? What are your scores? What is your AAofA? Mix of credit?

Re: Magic Utilization #?

Anonymous — Wed, 19 Aug 2009 21:45:31 GMT

>>>>>Chances are your utilization wasn't bad enough to begin with in your bucket for a tweak like you executed to matter. How old is yourt oldest reporting account? What are your scores? What is your AAofA? Mix of credit? <<<<<<

HI! Thanks. That is the problem, we're rebuilding- so we're at month 4 right now. Scores are mid to upper 500's. Installments= 2 small student loans and 2 cars (one 3 years old and one almost 4 years old).

So, are we just still early? When is the typical *burst* if any???

Re: Magic Utilization #?

smallfry — Wed, 19 Aug 2009 22:18:10 GMT

You should see some improvement at the one year mark. What negatives are on your reports?

Re: Magic Utilization #?

marty56 — Wed, 19 Aug 2009 23:23:35 GMT

The best way to find out is to PIF all the CCs so you will have a baseline and then allow 1 CC to report a small balance, then PIF of course.

For my credit profile, TU want 0% util and EQ likes a little util but the point loss on EQ is only 3 points I loose 10 or more points on TU for reporting aa small balance on a single card.

Re: Magic Utilization #?

smallfry — Wed, 19 Aug 2009 23:26:17 GMT

@marty56 wrote:
The best way to find out is to PIF all the CCs so you will have a baseline and then allow 1 CC to report a small balance, then PIF of course.

For my credit profile, TU want 0% util and EQ likes a little util but the point loss on EQ is only 3 points I loose 10 or more points on TU for reporting aa small balance on a single card.

Mid to upper 500's U seems like the least of the problems.

Re: Magic Utilization #?

marty56 — Wed, 19 Aug 2009 23:39:38 GMT

Except for history, the OP's credit profile might look like mine if the OP has a major derog so 0% util could give a few points to make 600.

Being a member of the 600 group might give momementum to go on. Sorta like a FICO Snowball.

Re: Magic Utilization #?

Anonymous — Thu, 20 Aug 2009 00:10:05 GMT

Just avoid yellow FICO snowballs

Re: Magic Utilization #?

marty56 — Thu, 20 Aug 2009 10:37:10 GMT

@Anonymous wrote:
Just avoid yellow FICO snowballs

Or other non-white colors for that matter.

Re: Magic Utilization #?

jackg — Thu, 20 Aug 2009 20:06:05 GMT

DMWBCC,

If ,in fact, you've just begun to rebuild your credit all I can say is that PATIENCE has to be your biggest asset at this point. I and my wife filed CH 7 BK in May 2006 and today my FICO scores are:

TU 684

EX 701 IN Jan 2009 just before they shut it down

EQ 783

I have to admit that my biggest mistake was "buying" way too many FICO scores, it was a lot of money but I just knew that my repair efforts were working and I wantedto the rewards for my efforts. Please don't make my mistake.

As far as utilization goes, everyone's experience is different because all CR"s contain different history. But, my observations here at CB tells me that to optimize your score in the area of "Amounts Owed" (30% of FICO score) you should carry a balance due on one card only and it should be 3%. This isn't written in stone though so don't hold me to it.

Good luck to you.

Re: Magic Utilization #?

Anonymous — Fri, 21 Aug 2009 16:33:49 GMT

OP, it has been my experience that the more derogs you have on your report the less impact utilization has (in a positive way). When I had 1 collection on my TU report paying down my CC debt had a positive effect but not as much as it did on EQ which has no collections. When I went from 98% utilization to 76%, I got a 17 point increase on my EQ but only 8 points on TU. Incredibly everything on both reports was identical but for the CA. My point is, work on the derogs and you should see more gains from paying down utilization. I also bought many scores, the benefit I saw is that I know now, how my actions affect my scores. I onlu buy scores when I lower my UTIL by 10% or more or if there are other major changes like the addition of an account. Good luck and have patience, you will get there.