topic Re: cc util question in Rebuilding Your Credit

cc util question

Anonymous — Fri, 23 Mar 2012 06:01:09 GMT

Last month I paid my cc util down to 34% from 85 and my eq fico jumped 23 pts...now this month to see real nice bump should bring my util to 9% or 0? Which do you think will give me the bigger score increase?

Re: cc util question

Anonymous — Fri, 23 Mar 2012 13:01:48 GMT

0% probably won't give you a boost. Fico wants to see usage.

Do you have multiple cards or just one?

"They" say the best is btwn 7-9% on ONE card only. So let one report a balance and the rest 0. You will have to play around with it over several months to find what works best for you.

I find the best for my score is at 7%.

Re: cc util question

Repo-ed — Fri, 23 Mar 2012 13:03:23 GMT

9% seems to be the sweet spot. Me showing 0% every month for the last 3 years has done nothing for me, but then again, I simply didn't know any better. Thanks MyFico!

Re: cc util question

rckstrscott — Fri, 23 Mar 2012 13:06:29 GMT

The only real consensus I have see online is 9% or less on one card, 0 on all others... The sweet spot could vary from person to person as well, some people report a 5% sweet spot, most 9, some even 3.. I think it really depends on the rest of your credit makeup

Id shoot for 9 or lower..

-scott

Re: cc util question

Repo-ed — Fri, 23 Mar 2012 13:07:11 GMT

@rckstrscott wrote:

The only real consensus I have see online is 9% or less on one card, 0 on all others... The sweet spot could vary from person to person as well, some people report a 5% sweet spot, most 9, some even 3.. I think it really depends on the rest of your credit makeup

Id shoot for 9 or lower..

-scott

"YMMV"

Re: cc util question

rckstrscott — Fri, 23 Mar 2012 13:20:12 GMT

@Repo-ed wrote:
@rckstrscott wrote:

The only real consensus I have see online is 9% or less on one card, 0 on all others... The sweet spot could vary from person to person as well, some people report a 5% sweet spot, most 9, some even 3.. I think it really depends on the rest of your credit makeup

Id shoot for 9 or lower..

-scott
"YMMV"

I suppose I coulda just said that ha

Re: cc util question

amanda1266 — Fri, 23 Mar 2012 13:56:39 GMT

I have a question about utilization.

What makes up the utilization??

I have a couple closed credit cards, but I still have a balance.. Is that included in my utilization?

Re: cc util question

rckstrscott — Fri, 23 Mar 2012 14:08:19 GMT

@amanda1266 wrote:
I have a question about utilization.
What makes up the utilization??
I have a couple closed credit cards, but I still have a balance.. Is that included in my utilization?

yes the are factoring

Re: cc util question

llecs — Fri, 23 Mar 2012 14:24:20 GMT

@amanda1266 wrote:
I have a question about utilization.
What makes up the utilization??
I have a couple closed credit cards, but I still have a balance.. Is that included in my utilization?

Short answer is yes, so as long as the closed TL reports a balance and a CL.

Included in revolving util:

1) All open CCs, assuming they report a CL.

2) All closed CCs, assuming they report a balance and a CL.

3) Charge cards like Amex and affect TU 98 only...same TU FICO as on here...newer versions exclude charge cards from util calcs.

4) Some no preset limit CCs (NPSLs) are included. If both the balance and CL report, then it is factored in like any other CC. Absent a CL, the high balance is used as proxy. If no high balance or CL is reported, then it is ignored.

5) LOCs and HELOCs can factor into revolving util. There is a limit threshold after which FICO will ignore it for util purposes. That limit varies across each FICO version. It's generally $30k+

6) Charged-off CCs can factor into revolving util as seen by FICO. If the balance and CL still report, then it is included provided the account has updated recently. In some cases, the high balance can be used as proxy. YMMV.

Re: cc util question

Anonymous — Fri, 23 Mar 2012 15:12:45 GMT

Thanks for the responses...i only hace 1 open cc.. i also have an auto loan thats almst paid off has 1 30 day late from 2010. i have an open revolving loan thats almost paid off never late from my CU.