topic Re: Utilization question in General Credit Topics

Utilization question

Fancyron — Thu, 10 May 2007 11:46:21 GMT

I have been in the process of paying down my revolving credit. I have definitely been encouraged by seeing 50 point avg increase in FICO scores from EQ, EXP, and TU over the last 6 months.

As I continue to pay down revolving balances, my question is: should I focus on getting my UTI% under 30% on each card, or should I focus more on getting my total UTI% under 30%. I have one card (with a lower limit) with a high UTI, and the other 2 are under 40% (with higher limits and balances). I just want to know what should be my best approach to increase my scores quicker.

Re: Utilization question

Tuscani — Thu, 10 May 2007 11:51:08 GMT

Fancyron wrote:
I have been in the process of paying down my revolving credit. I have definitely been encouraged by seeing 50 point avg increase in FICO scores from EQ, EXP, and TU over the last 6 months.

As I continue to pay down revolving balances, my question is: should I focus on getting my UTI% under 30% on each card, or should I focus more on getting my total UTI% under 30%. I have one card (with a lower limit) with a high UTI, and the other 2 are under 40% (with higher limits and balances). I just want to know what should be my best approach to increase my scores quicker.

You should focus on both as an individual card util and overall util is a factor in scoring. Try and concentrate are the higher interest cards first.

Re: Utilization question

Fancyron — Thu, 10 May 2007 15:13:53 GMT

Thanks for responding. Say if all 3 interest rates are the same, should I focus equally on individual UTI vs. total UTI?

Re: Utilization question

Tuscani — Thu, 10 May 2007 18:22:08 GMT

Fancyron wrote:
Thanks for responding. Say if all 3 interest rates are the same, should I focus equally on individual UTI vs. total UTI?

Personally, I would do individual. You will feel like you are making more progress as you get individual cards paid down or off.