1% UTL better than 9% or same?

[NikoD]

I'm new to learning about FICO scoring so I have a question about how utilization factors into the scoring. I've read here that below 10% is best but does that mean that for scoring purposes it doesn't matter if it is 1% or 9%, just as long as it's below 10%. After you get below 10% is further lowering better for the score? Also, is 0% bad because it looks like the credit isn't even being used?

[blondy250]

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@NikoD wrote:

I'm new to learning about FICO scoring so I have a question about how utilization factors into the scoring. I've read here that below 10% is best but does that mean that for scoring purposes it doesn't matter if it is 1% or 9%, just as long as it's below 10%. After you get below 10% is further lowering better for the score? Also, is 0% bad because it looks like the credit isn't even being used?

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Its usually less then 10%, but its different for everyone based on there individual credit profile. Its of course less then 10% reporting on only 1 card, and yes reporting zero isn't the best idea.

[Gunnar419]

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@blondy250 wrote:

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@NikoD wrote:

I'm new to learning about FICO scoring so I have a question about how utilization factors into the scoring. I've read here that below 10% is best but does that mean that for scoring purposes it doesn't matter if it is 1% or 9%, just as long as it's below 10%. After you get below 10% is further lowering better for the score? Also, is 0% bad because it looks like the credit isn't even being used?

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Its usually less then 10%, but its different for everyone based on there individual credit profile. Its of course less then 10% reporting on only 1 card, and yes reporting zero isn't the best idea.

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+1 Everybody has their own sweet spot, usually somewhere between 1% and 9% on one card and only that one card reporting, but we have to experiment to find out where our personal sweet spot is.

Unless you're really into fine tuning your score, though, having overall util of 10% is darned good.

[gdale6]

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@Gunnar419 wrote:

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@blondy250 wrote:

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@NikoD wrote:

I'm new to learning about FICO scoring so I have a question about how utilization factors into the scoring. I've read here that below 10% is best but does that mean that for scoring purposes it doesn't matter if it is 1% or 9%, just as long as it's below 10%. After you get below 10% is further lowering better for the score? Also, is 0% bad because it looks like the credit isn't even being used?

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Its usually less then 10%, but its different for everyone based on there individual credit profile. Its of course less then 10% reporting on only 1 card, and yes reporting zero isn't the best idea.

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+1 Everybody has their own sweet spot, usually somewhere between 1% and 9% on one card and only that one card reporting, but we have to experiment to find out where our personal sweet spot is.

Unless you're really into fine tuning your score, though, having overall util of 10% is darned good.

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You need to experiment with the percentages to find your sweet spot.

[Anonymous]

OP, there is a lot of discussion on this and similar subjects in the Understanding FICO Scoring thread.

[juggalo9er]

the question i would have would be what would be a ballpark score increase from 21% util down to say 3% on only 1 card with two others reporting 0

[twist7d7]

Now is that 1-9% of total credit cards? or just on the card that is reporting?

[juggalo9er]

just on one card...scores with 21% are in my sig

[twist7d7]

so on my 800 discover it i can only have it report 72 and the month that i use BCE (2k) i can have it report 180?  or can i have the discover or the BCE report 252? i always PIF 

[avv7c0]

In that last situation, you'd be penalized for having balances on multiple cards.