topic Re: Aggregate vs CC Utilization in General Credit Topics

Aggregate vs CC Utilization

hubbryan — Tue, 29 Aug 2023 13:24:37 GMT

I have decreased my aggregate utilization by 10%, but my CC utilzation increased from 33% to 48%. Does aggregate utilization carry more weight than CC utilization in the calculating of your credit score?

Re: Aggregate vs CC Utilization

GZG — Tue, 29 Aug 2023 15:35:00 GMT

@hubbryan wrote:
I have decreased my aggregate utilization by 10%, but my CC utilzation increased from 33% to 48%. Does aggregate utilization carry more weight than CC utilization in the calculating of your credit score?

I'd have to imagine the credit score impact from installment loan aggregate utilization is much, much smaller than cc utilization. 48% CC utilization is pretty high and there is probably a not-trival amount of credit score to be gained back once it's paid off

Re: Aggregate vs CC Utilization

CH-7-Mission-Accomplished — Tue, 29 Aug 2023 15:52:32 GMT

@GZG wrote:
@hubbryan wrote:
I have decreased my aggregate utilization by 10%, but my CC utilzation increased from 33% to 48%. Does aggregate utilization carry more weight than CC utilization in the calculating of your credit score?
I'd have to imagine the credit score impact from installment loan aggregate utilization is much, much smaller than cc utilization. 48% CC utilization is pretty high and there is probably a not-trival amount of credit score to be gained back once it's paid off

I don't see a reference to an installment account. Am I missing something?

Re: Aggregate vs CC Utilization

CH-7-Mission-Accomplished — Tue, 29 Aug 2023 15:53:32 GMT

@hubbryan wrote:
I have decreased my aggregate utilization by 10%, but my CC utilzation increased from 33% to 48%. Does aggregate utilization carry more weight than CC utilization in the calculating of your credit score?

Do you mean that your total credit utilizatoin dropped by 10% but you incresed the utilization on one card from 33% to 48%? I'm confused.

Re: Aggregate vs CC Utilization

hubbryan — Tue, 29 Aug 2023 16:18:28 GMT

My aggregate utilization dropped 10%, but my credit card utilization went from 33% to 48%.

Re: Aggregate vs CC Utilization

FireMedic1 — Tue, 29 Aug 2023 16:49:23 GMT

@hubbryan wrote:
My aggregate utilization dropped 10%, but my credit card utilization went from 33% to 48%.

Aggregate is the total of all cards util %. If you maxed out 1 card. That wont help anything. Score drops. How many cards do you have?

Re: Aggregate vs CC Utilization

CYBERSAM — Tue, 29 Aug 2023 16:55:58 GMT

@hubbryan wrote:
My aggregate utilization dropped 10%, but my credit card utilization went from 33% to 48%.

What is your definition of "aggregate utilization"?

I think there is a misunderstanding of what you refereeing to!

Re: Aggregate vs CC Utilization

Thomas_Thumb — Tue, 29 Aug 2023 17:36:11 GMT

@hubbryan wrote:
I have decreased my aggregate utilization by 10%, but my CC utilzation increased from 33% to 48%. Does aggregate utilization carry more weight than CC utilization in the calculating of your credit score?

Impact of aggregate and individual card revolving utilizations on score depend on whether or not utilization thresholds are crossed.

For example, individual card utilization thresholds likely exist a 29% and 49%. Going from 33% to 48% does not cross any threshold - so no point loss. However, if you went from 28% to 50% then 2 thresholds would have been crossed => point loss likely.

Likewise, aggregate utilization thresholds are thought my many to exist. Examples of some are 5%, 9% and 29%. If your AG utilization went from 18% to 8%, threshold crossed => point gain. However, if you went from 24% to 14% perhaps no point change due to utilization.

Your 10% drop in aggregate given the card increasr suggests some cards may have been paid to zero. Fico looks at # of revolving accounts with balances. Reducing accounts with balances can increase score. However, if no accounts report a balance, you will receive the "no recent revolving activity" penalty.

Re: Aggregate vs CC Utilization

SouthJamaica — Tue, 29 Aug 2023 17:46:25 GMT

@hubbryan wrote:
I have decreased my aggregate utilization by 10%, but my CC utilzation increased from 33% to 48%. Does aggregate utilization carry more weight than CC utilization in the calculating of your credit score?

There are 2 completely separate types of aggregate utilization.... revolving and installment. Your aggregate revolving utilization carries more weight.

Re: Aggregate vs CC Utilization

GreatLife — Tue, 29 Aug 2023 19:40:21 GMT

Re: Aggregate vs CC Utilization

MeredithLepore — Mon, 04 Sep 2023 06:37:40 GMT

Credit scoring models look at both aggregate credit utilization and the individual utilization on each account. To impact your score positively your utilization across each individual card should be under 30% as well as you overall utilization (combined credit used/combined credit available). Hope that helps!

Re: Aggregate vs CC Utilization

FireMedic1 — Mon, 04 Sep 2023 20:04:19 GMT

@MeredithLepore wrote:
Credit scoring models look at both aggregate credit utilization and the individual utilization on each account. To impact your score positively your utilization across each individual card should be under 30% as well as you overall utilization (combined credit used/combined credit available). Hope that helps!

Can Arkali, senior director of scores and predictive analytics with FICO, confirms that using a low percentage of your available credit can have a positive impact on your FICO Score. Yet Arkali adds, "there is nothing 'optimal or significant' about 30% credit card utilization." FICO scoring models consider a 30% credit card utilization rate less risky than a 50% utilization percentage. As a result, you'd likely see a 30% utilization rate lead to a better score than what you'd see at a higher threshold. Still, 30% utilization would be viewed less favorably than a lower utilization rate. You'll want single digits for best scoring.

Re: Aggregate vs CC Utilization

hdporter — Tue, 12 Sep 2023 03:02:24 GMT

@FireMedic1 wrote:
@MeredithLepore wrote:
Credit scoring models look at both aggregate credit utilization and the individual utilization on each account. To impact your score positively your utilization across each individual card should be under 30% as well as you overall utilization (combined credit used/combined credit available). Hope that helps!
Can Arkali, senior director of scores and predictive analytics with FICO, confirms that using a low percentage of your available credit can have a positive impact on your FICO Score. Yet Arkali adds, "there is nothing 'optimal or significant' about 30% credit card utilization." FICO scoring models consider a 30% credit card utilization rate less risky than a 50% utilization percentage. As a result, you'd likely see a 30% utilization rate lead to a better score than what you'd see at a higher threshold. Still, 30% utilization would be viewed less favorably than a lower utilization rate. You'll want single digits for best scoring.

I wouldn't be inclined to dispute anything in that statement. However, over the 20 years I've been tracking my FICO score and following posts here, I've had a keen impression that the score hit you take in going from (say) 10%-30% utilization on a card is smaller than the score hit you take in going to 30%+ (and, again, smaller than the hit in going above 50%).

So it's been my inference that this is why the general guidance around quarters such as myFICO has been to avoid over 50% utilization, and strive for under 30%, where possible. But, yeah, "lower" is always better than "higher".

Re: Aggregate vs CC Utilization

MeredithLepore — Wed, 13 Sep 2023 06:55:10 GMT

Essentially, the lower the better is the gist of it if I got it right. But at least some amount should be utilized for it to be signficant.