topic Re: Utilization Question in Rebuilding Your Credit

Utilization Question

Anonymous — Fri, 17 Apr 2015 04:18:31 GMT

Aloha All!

Currently in the garden for at least the next 7 months or so while I let my 2 new cap1 cards age! They still have yet to report! Boo! And in the last quarter of the year my 2 unpaid charge offs will drop off.

So while I garden I am also getting my utilization under control since until I started reading post on here I had now clue that utilization was even a factor in your credit Score!

So currently paying my 3 "big" cards down and here's what things look like...

Barclay 4k limit currently about 3.7k owed

CreditOne (I know! Lol) 1.3k limit about $800 owed

First Premier (I know..again!) $700 limit about $500 owed.

Have my 2 cap ones that I just got with small limits that I use heavily and pay off a few times a month.

Question being at what point when I get my utilization under control would I see a score boost?

Thanks for the help in advance!

Re: Utilization Question

Anonymous — Fri, 17 Apr 2015 04:22:23 GMT

I say 30 & up from there.

Re: Utilization Question

Anonymous — Fri, 17 Apr 2015 04:29:10 GMT

Hi sandibeach22! Thanks for replying! Thats what I was thinking that I'd need to get things under 30%. Shouldn't be too hard to do I just like to see results and I'm not the most patient man in the universe.

Just need to pay down and garden.

Re: Utilization Question

Anonymous — Fri, 17 Apr 2015 04:32:40 GMT

I see score changes when I fall below 80%, 50%, 30%, and 10%.

Re: Utilization Question

Anonymous — Fri, 17 Apr 2015 04:35:12 GMT

I had a higher utilization & went down from there. It bounces back pretty quick! At 22% and heading down to below 9%.

Re: Utilization Question

Anonymous — Fri, 17 Apr 2015 04:37:03 GMT

Ohhh Rising_Scores! I like that answer! Always good to see positive "tangible" changes when you are doing positive work.

Re: Utilization Question

Anonymous — Fri, 17 Apr 2015 04:40:29 GMT

Guess I went to town when my Barclay Card was still a Bank of America Card (Hawaiian Airlines). That card is my savior for my AAoA though.

Re: Utilization Question

Anonymous — Fri, 17 Apr 2015 04:40:40 GMT

@Anonymous wrote:
Aloha All!

Currently in the garden for at least the next 7 months or so while I let my 2 new cap1 cards age! They still have yet to report! Boo! And in the last quarter of the year my 2 unpaid charge offs will drop off.

So while I garden I am also getting my utilization under control since until I started reading post on here I had now clue that utilization was even a factor in your credit Score!

So currently paying my 3 "big" cards down and here's what things look like...

Barclay 4k limit currently about 3.7k owed

CreditOne (I know! Lol) 1.3k limit about $800 owed

First Premier (I know..again!) $700 limit about $500 owed.

Have my 2 cap ones that I just got with small limits that I use heavily and pay off a few times a month.

Question being at what point when I get my utilization under control would I see a score boost?

Thanks for the help in advance!

Congrats on gardening. I just entered as well. There is really no specific utilization percentage to determine when your scores start to increase. The common belief is somewhere between 1% and 9% is the optimal level. As you approach this level of utilization, I suspect your score will improve gradually.

Re: Utilization Question

Anonymous — Fri, 17 Apr 2015 04:42:09 GMT

I opened 10 at once in Nov. So my scores took a dive. But they're over 75% back up.

Re: Utilization Question

Momof5 — Fri, 17 Apr 2015 14:51:44 GMT

If your baddies are set to drop off in the last quarter, I would ask TU for an early exclusion in June and ask EQ and EX in August.

Re: Utilization Question

Anonymous — Fri, 17 Apr 2015 15:10:27 GMT

Depends on those two unpaid charge offs. If those are revolving account charge offs they will distort your UTI% and you might not see much score gain depending on the amount showing as balances on them.

Re: Utilization Question

Anonymous — Fri, 17 Apr 2015 15:56:10 GMT

NormanFH Yeah those are revolvers. Amex @ 2K and Macy's @ 300. how would I know for sure if those are distorting my utilization? I'll just assume that they are.

Re: Utilization Question

Anonymous — Fri, 17 Apr 2015 16:18:38 GMT

If they are reporting a balance then that balance is included in your FICO score calculation. This is the reason revolving CO's effect your score so much more that other major derogs, like an unpaid medical bill or utility bill. They hit you on the payment history side (35% of your score), and then they hit you on your UTI% (30% of your score), so they can have a negative impact on more than 60% of your FICO score.

So when you are trying to calculate an overall UTI% target, add $2.3K to your balances.

Re: Utilization Question

Anonymous — Fri, 17 Apr 2015 16:35:29 GMT

Thanks NormanFH! And here I thought I was at 86% according to my myFICO report. Oh well just another hill to climb While I garden. Haha

Re: Utilization Question

Anonymous — Fri, 17 Apr 2015 20:38:18 GMT

Well as soon as I get my current utilization under control which would be no balances on those two evil cards (credit one and first premier) and under 10% on my Barclay I am planning to tackle those two Charge Offs with my primary focus being on Amex as I want back in with them at some point in time and Ill pay off my Macys too.

Should I wait for both of those to drop off before I call them and pay them off?

Re: Utilization Question

Anonymous — Fri, 17 Apr 2015 20:45:52 GMT

@Anonymous wrote:
Well as soon as I get my current utilization under control which would be no balances on those two evil cards (credit one and first premier) and under 10% on my Barclay I am planning to tackle those two Charge Offs with my primary focus being on Amex as I want back in with them at some point in time and Ill pay off my Macys too.

Should I wait for both of those to drop off before I call them and pay them off?

That would give you more negotiating power.

Re: Utilization Question

Anonymous — Fri, 17 Apr 2015 21:23:57 GMT

@Anonymous wrote:
@Anonymous wrote:
Well as soon as I get my current utilization under control which would be no balances on those two evil cards (credit one and first premier) and under 10% on my Barclay I am planning to tackle those two Charge Offs with my primary focus being on Amex as I want back in with them at some point in time and Ill pay off my Macys too.

Should I wait for both of those to drop off before I call them and pay them off?

That would give you more negotiating power.

Thanks NormanFH! I dont think I will negotiate with Amex. Im sure in order to get another card with them I will probably have to pay in full unless I luckily slip thorugh the cracks like some people have. Im not in a huge rush as the fall off date is soon and Im still paying down stuff to get my current utilization under control!

Re: Utilization Question

Anonymous — Sat, 18 Apr 2015 01:14:03 GMT

@Momof5 wrote:
If your baddies are set to drop off in the last quarter, I would ask TU for an early exclusion in June and ask EQ and EX in August.

Should I try to ask for early exclusions for those two badies as they are unpaid charge offs? I just dont want them to stir the pot. Would it even stir the pot by asking? I mean it would be nice to get that stuff off earlier than normal but Id hate to have one of crediors decide to update LOL.

Re: Utilization Question

gdale6 — Sat, 18 Apr 2015 02:07:20 GMT

@Anonymous wrote:
@Momof5 wrote:
If your baddies are set to drop off in the last quarter, I would ask TU for an early exclusion in June and ask EQ and EX in August.
Should I try to ask for early exclusions for those two badies as they are unpaid charge offs? I just dont want them to stir the pot. Would it even stir the pot by asking? I mean it would be nice to get that stuff off earlier than normal but Id hate to have one of crediors decide to update LOL.

The creditor has no say in an early exclusion its the CRAs job to do it at the proper time. You are asking the CRAs for a goodwill jesture when you ask them to remove the TL early.

Re: Utilization Question

reneasworld — Sat, 18 Apr 2015 17:30:21 GMT

@Momof5 wrote:
If your baddies are set to drop off in the last quarter, I would ask TU for an early exclusion in June and ask EQ and EX in August.

I have seen the b term "early exclusion"lately. How does this happen. I have an old mortgage accountil which we did a short sale. On tu and eq, it has been removed but exp says it is schedule for august. Is there any way to get that done now