7% vs 30% utilization

[mademan0890]

Does it really make a difference as to which is better for your credit score? Right now my only credit card is at a 18% UTL. I know too stay well beneath 30%. Is it going to help if I bring it down more?

[markbeiser]

You will get a small bump up in scores if you go below 10%, especially if every individual card is lower than that.

[FireMedic1]

Everyone has a sweet spot. For myself playing around. 6% is the good place.

[coldworld]

As I was paying down super high util, I saw big score jumps when I paid a card below 10%

[RSX]

5% and lower makes a big difference in my score

** Under 30% is such a rough guide - it is basically the bare minimum so that people have a goal**

definitely each step below 30 makes a difference

[titancylinder]

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@mademan0890 wrote:

Does it really make a difference as to which is better for your credit score? Right now my only credit card is at a 18% UTL. I know too stay well beneath 30%. Is it going to help if I bring it down more?

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Huge difference for me. When interest rates were lower, I would routinely keep a 50% utilization across the board. Not because I couldn't afford to pay it off but because I leveraged my money. However, when I paid everything down under 6% my credit score jumped 100 points almost. I usually hovered around 680. After paying the debt nearly off I hover around 760-780 (F8) My F8 bank card score is 790.  

I think the importance varies on your goals though. If your comfortable carrying the debt, can pay it off if needed,  and you're not getting any kind of AA, so be it. 

[dlister70]

Several years ago, I saw someone post about "known scoring thresholds".  I can't find the original thread anymore, but I saved the numbers and have believed it to be true since then.  It could have just been someone saying things that didn't know any better, but the thread made me believe that these were actual numbers used to determine FICO scores.

I share them with you now, for whatever that is worth. 

Known scoring thresholds are at 8.9%, 28.9%, 48.9%, 68.9%, and 88.9%

I can say for certain that I saw a FICO increase when I went below 48.9% on one of my balance transfer cards, but did not see any significant change when it was at like 49.5%.  I remember one payment got it down to 49.5%, so I was like "testing out" these numbers.  And I did see a score jump once I paid it below the 48.9% the next month.  Perhaps there were other factors at work with my other cards though, so that's not exactly scientific data. 

[Thomas_Thumb]

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@mademan0890 wrote:

Does it really make a difference as to which is better for your credit score? Right now my only credit card is at a 18% UTL. I know too stay well beneath 30%. Is it going to help if I bring it down more?

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Probably not as long as aggregate revolving utilization is currently under 9% (or 5% for some profiles). The important thresholds for an individual cards are under 29%, under 49% and not maxing out a card (80% and above).

I never saw a point drop on a card utilization basis at any level between 1% and 29% - as long as aggregate utilization was under 9%. Of course, increasing # of cards with balances can impact score.

You should definitely test lower card utilizations yourself and report your findings.

[Shooting-For-800]

Everyone is different.

I doubt it is a 10 point difference for well established credit.

For lower credit scores, it may make more of an impact.

Score fluctuate.

you want to be under 29% if possible.

GL!

[Blender]

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@dlister70 wrote:

Several years ago, I saw someone post about "known scoring thresholds".  I can't find the original thread anymore, but I saved the numbers and have believed it to be true since then.  It could have just been someone saying things that didn't know any better, but the thread made me believe that these were actual numbers used to determine FICO scores.

I share them with you now, for whatever that is worth. 

Known scoring thresholds are at 8.9%, 28.9%, 48.9%, 68.9%, and 88.9%

I can say for certain that I saw a FICO increase when I went below 48.9% on one of my balance transfer cards, but did not see any significant change when it was at like 49.5%.  I remember one payment got it down to 49.5%, so I was like "testing out" these numbers.  And I did see a score jump once I paid it below the 48.9% the next month.  Perhaps there were other factors at work with my other cards though, so that's not exactly scientific data. 

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Thanks for posting this, gonna test those numbers this month.