$0 balance vs. 1-9% utility???? Confused

Anonymous · ‎07-26-2007

A month ago I paid off my credit card and my FICO score went up 37 points. However, everytime I see a post about credit card utility, it says the best way to maximize your score is to have it at 1-9% utility. Should I go charge 1-9% or just leave my credit card at $0. Thanks!

Message Edited by dooodooo on 07-26-2007 06:27 PM

Anonymous · ‎07-26-2007

Ive paid in full each month but now i am going to start leaving 1-9% when the statement comes because i hear people talk about it. I will give this idea a try and see what happens to my score between august and december.

fused · ‎07-26-2007

dooodooo wrote:
A month ago I paid off my credit card and my FICO score went up 37 points. However, everytime I see a post about credit card utility, it says the best way to maximize your score is to have it at 1-9% utility. Should I go charge 1-9% or just leave my credit card at $0. Thanks!

Message Edited by dooodooo on 07-26-2007 06:27 PM

Yes, 1-9% utilization for max FICO points.

Example: CC (credit card), CL (credit limit) 5K, balance 400, util 8%. It best to have all of your revolving accounts reporting util 1-9% and make sure it gets reported by the CRAs. For more info click below.

http://ficoforums.myfico.com/fico/board/message?board.id=ficoscoring&thread.id=2654

smallfry · ‎07-26-2007

I need to see concrete proof that you will get any meaningful pop in FICO by not paying in full. I know people who say they have their highest scores reporting 0 balances across the board. Maybe 1% but surely not 9%. Even the high achievers supposedly have no more than 7% showing. Probably closer to 4%. Don't pay interest whatever you do. That makes 0 zero no sense at all.

Message Edited by smallfry on 07-26-2007 09:52 PM

Anonymous · ‎07-26-2007

you PIF each month an still show a balance the next statement.

my statement balance july 2nd $299.09 that was paid today the 26th leaving a balance of $226.28 that I've put on the card this month but won't come due til augest so if I want to show a $0 balance I will to need to make another payment on Augest 1st for the outstanding balance as of that date, but then your not taking advantage of your grace period

fused · ‎07-26-2007

smallfry wrote:
I need to see concrete proof that you will get any meaningful pop in FICO by not paying in full. I know people who say they have their highest scores reporting 0 balances across the board. Maybe 1% but surely not 9%. Even the high achievers supposedly have no more than 7% showing. Probably closer to 4%. Don't pay interest whatever you do. That makes 0 zero no sense at all.

Message Edited by smallfry on 07-26-2007 09:52 PM

Hey POS (point of sale) it's late, I will explain tomorrow, so bring your thinking cap!

smallfry · ‎07-27-2007

@fused111 wrote:

@smallfry wrote:
I need to see concrete proof that you will get any meaningful pop in FICO by not paying in full. I know people who say they have their highest scores reporting 0 balances across the board. Maybe 1% but surely not 9%. Even the high achievers supposedly have no more than 7% showing. Probably closer to 4%. Don't pay interest whatever you do. That makes 0 zero no sense at all.

Message Edited by smallfry on 07-26-2007 09:52 PM

Hey POS (point of sale) it's late, I will explain tomorrow, so bring your thinking cap!

Yes I know the difference between paying after the cut date and before the due date. The thing you need to watch out for is leaving too many accounts showing balances. If you have a car loan and a mortgage that's already two. In that case I wouldn't let any more than one credit card report a balance. If you don't have a mortgage and just have a car loan I think letting two cards report balances is good.

Anonymous · ‎07-27-2007

Aren't car loans and mortgages looked at differently than CC's and other revolving balances? I don't think that it would hurt to have a car loan, mortgage and a couple of CC's showing balances as long as the CC Util % is below the 9% point.

Anonymous · ‎07-27-2007

Jamesus81801 wrote:
Aren't car loans and mortgages looked at differently than CC's and other revolving balances? I don't think that it would hurt to have a car loan, mortgage and a couple of CC's showing balances as long as the CC Util % is below the 9% point.

They don't figure into you revolving Util , but when caculating credit risk all types of credit are considered.

fused · ‎07-27-2007

Jamesus81801 wrote:
Aren't car loans and mortgages looked at differently than CC's and other revolving balances? I don't think that it would hurt to have a car loan, mortgage and a couple of CC's showing balances as long as the CC Util % is below the 9% point.

AGREED!