0%, 6%, 15%, or 30% Utilization prior to app

[Drifter73]

As the title indicates, is it better to be 0%, 6%, 15%, or 30% Utilization prior to applying for a new card to increase approval odds?

Or does it depend on the lender? (E.g. Different Utilization preferences)

In short, does 0% Utilization prior to an app help or hurt approval odds, showing no credit debt at the time of app?

[FinStar]

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@Drifter73 wrote:

As the title indicates, is it better to be 0%, 6%, 15%, or 30% Utilization prior to applying for a new card to increase approval odds?

Or does it depend on the lender? (E.g. Different Utilization preferences)

In short, does 0% Utilization prior to an app help or hurt approval odds, showing no credit debt at the time of app?

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It really depends on so many factors. Each lender weighs different things.

Conventional wisdom usually points to the lower the utilization, whether it's specific tradelines or overall, the more optimal the outcome -- to an extent. But, then again, it's all profile-specific and it depends on the lender and their algorithms. Your reports need to reflect some sort of periodic activity, but you definitely don't need to zero everything out prior to a credit card application.

[NaimeseOGK]

0 only if one of the cards have like a 2-3 dollar balance to the point where the total utilization stays at 0 because its not enough to make 1% total. Other then that don't let it be an complete 0 use AZEO. 

[SouthernCredit]

It really is profile and lender specific. I've been approved for new cards at 0% overall with no balances reporting, I've been approved at 30% overall utilization with all cards around 30%, and I've been approved at 30% with individual cards reporting closer to 70% and no balance on others. Profile and income will have a good bit to do with it as well.

[Drifter73]

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@NaimeseOGK wrote:

0 only if one of the cards have like a 2-3 dollar balance to the point where the total utilization stays at 0 because its not enough to make 1% total. Other then that don't let it be an complete 0 use AZEO. 

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Thanks, I looked up the azeo method and will deploy that. I have a couple months before my next app, so making sure my ducks are in a row for the best odds of approval.

[SouthJamaica]

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@Drifter73 wrote:

As the title indicates, is it better to be 0%, 6%, 15%, or 30% Utilization prior to applying for a new card to increase approval odds?

Or does it depend on the lender? (E.g. Different Utilization preferences)

In short, does 0% Utilization prior to an app help or hurt approval odds, showing no credit debt at the time of app?

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The lower the better, but you do want one bank card to report a small balance before you pay it off.

[FireMedic1]

At some point from your siggy. You'll need to pass the 2 yr mark. "AAoA - 7mo." Ya got points waiting in the wing.

[Drifter73]

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@FireMedic1 wrote:

At some point from your siggy. You'll need to pass the 2 yr mark. "AAoA - 7mo." Ya got points waiting in the wing.

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That may not be for another year and a half. I have 2 more double app sprees (x2 apps per 6 Mos for a year).

Then I'll extend my 6mo gardening to 1 year gardening and start looking at a potential land investment.

There's just x4 cards for rewards I have to have for the ideal savings combinations with my lifestyle. A few going to SD when that happens as well.

I think I'll be doing the azeo method moving forward before each app time to help.

I should be at 720+ once I reach azeo. I noticed I get a 15 to 25 point boost each time I pay a balance to zero.