FICO Question

MrCredit — Fri, 03 Jun 2011 13:56:28 GMT

1. If I purchase a jetski would an new installment loan be beneficial over using 65% util on one credit card? What will each do to my FICO, what has the last effect?

2. What is the normal util that is not negatively scored on CCs, for instance my highest card has 28% util?

Re: FICO Question

llecs — Fri, 03 Jun 2011 18:05:44 GMT

@MrCredit wrote:
1. If I purchase a jetski would an new installment loan be beneficial over using 65% util on one credit card? What will each do to my FICO, what has the last effect?
2. What is the normal util that is not negatively scored on CCs, for instance my highest card has 28% util?

1) depends on how soon you PIF. If you are talking years to PIF, then I personally would consider a loan if I didn't pay in cash first. If months, I personally would use a CC because the new TL will just drag my scores down over a greater period of time vs. the short-term util hit. If long-term, the rate would be an issue for me too.

2) Anything 10% and up likely produces a ding and it climbs up from there. What would your OVERALL util be if you added this purchase and where would that util have started from? That's a better measurement of the damage.

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