Can Someone Explain This To Me?

[Anonymous]

Well, I've already ranted on here about the drops in my FICO scores this month.  I can understand somewhat of a drop because of all the new credit end of last year.  My question is: even though I don't always PIF, I always pay 50 to 60% of the balance, am never, ever late (matter of fact a week early before due date - my friend thinks that's a bad idea).  So, paying so much more than the minimum counts for nothing with the ccc's? It does nothing to help my FICO & Bankcard scores, obviously.  Only benefit is to me.  I pay it off quicker but it should count towards increasing my score, too.  Or, am I being naive?  I don't get it...

[Anonymous]

The important factor in your score (other than payment on time) is utilization.  What are your CLs for each card?  How much have you charged each month?  Your score will suffer if you max a card out -- even if you pay it in full -- if that high balance reports to the CRAs.  Most (but not all) CCCs report your statement balance (your total due before you make any payments). 

Hope I haven't made this more confusing ...

[Anonymous]

No, it's not confusing at all.  Please let me know what my uti rate is because I am really bad at math!

WF Plat Visa - CL 11k     Balance 1,307

WAMU Plat CLI 7k       

[Anonymous]

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MsQueenB wrote:

No, it's not confusing at all.  Please let me know what my uti rate is because I am really bad at math!

WF Plat Visa - CL 11k     Balance 1,307

WAMU Plat CLI 7k       

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Util on your WF is 11%.  You get that by dividing the balance $1307 by the CL $11000.

11% is great.    The absolute optimum seems to be between 1-9% but you only need to have that specific util at the time you are actually applying for credit.

What's your balance on WAMU?

[Anonymous]

No, it's not confusing at all.  Please let me know what my uti rate is because I am really bad at math!

WF Plat Visa - CL 11k     Owe: 1,307

WAMU Plat MC CL 7k      Owe:   316.00

AmEX Blue CL 8,500k      Owe: 372.00    

PenFed Gold CL 23,900k   Owe: 9,400.00

PenFed Plat CL 10k           Owe: 938.00

Chase Amazon Visa CL 6k   Owe: 0

Chase ASPCA Visa CL 7k     Owe: 322.00

Kroger MC CL 5,500k       Owe: 0

Macys Card CL 1500k   Owe: 0

Nordstrom Visa CL 3k  Owe: 218.00

As you can see, I have a lot of credit but the only BIG balance is on the PenFed Gold and that's going to be paid off in the next coupldeof months.  Total credit:  83,400k  Total owed: 12,873

I don't see a BIG problem.  What's the %?

Thanks

[marty56]

For me, it seems that I do the best if only one of my CCs report.  I lost points when my Sams card showed a $54 charge on a 3100 CL.

[Anonymous]

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MsQueenB wrote:

No, it's not confusing at all.  Please let me know what my uti rate is because I am really bad at math!

WF Plat Visa - CL 11k     Owe: 1,307 Util = 11%

WAMU Plat MC CL 7k      Owe:   316.00  Util = 4%

AmEX Blue CL 8,500k      Owe: 372.00    Util = 4%

PenFed Gold CL 23,900k   Owe: 9,400.00  Util = 39%

PenFed Plat CL 10k           Owe: 938.00  Util = 9%

Chase Amazon Visa CL 6k   Owe: 0 Util = 0

Chase ASPCA Visa CL 7k     Owe: 322.00 Util = 5%

Kroger MC CL 5,500k       Owe: 0  Util = 0

Macys Card CL 1500k   Owe: 0 Util = 0

Nordstrom Visa CL 3k  Owe: 218.00 Util = 7%

As you can see, I have a lot of credit but the only BIG balance is on the PenFed Gold and that's going to be paid off in the next coupldeof months.  Total credit:  83,400k  Total owed: 12,873

Average Util = 15%

I don't see a BIG problem.  What's the %? 

Thanks

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See the calculations above (get yourself a calculator).  The biggest problem is the PenFed because it's over 30%.  For optimum FICO score, you need the util on that card under 10%.  This will help bring your average util (which is equally important as the individual ones) down from 15%.

[techgirl]

Wow QueenB you have a lot of cards....

[tonsers]

It will also help your score to have more than half of your accounts reporting 0 balances. Looks like you have 3 there already - maybe you could pay off three more of the small ones. That should give you a little score bump.

Message Edited by tonsers on 03-07-2008 11:38 AM

[Anonymous]

Seems like only 1-4 cards should be reporting a balance and those only reporting a balance of 1-9% of the card's CL for max FICO.  Always less than half should report a balance and never more than 1-4.

I have 11 cards - 6 are reporting balances right now (missed the cutoff for Chevron, they report EOM every other month so they are now an 'emergency only' card), another hasn't reported for this rotation yet so hence the 5th one.  Guess I'll get straightened out in late April or early May.

I picked the cards to report: Citgo (highest Gas CL), Citi (which always has charges to it because of work), Cap1 (2nd highest major CL), and Target (trying to get a Visa).  Everything else is used but PIF'd before the statement cuts for that month (so I'm not availing myself of the grace period but only 1-3 weeks of free use of their money)  We'll see if this works...