Difference between 7% and 1% util?

[528491]

Apologies if this has been answered before, but I couldn't find a clear answer.

Is there a noticeable score difference between having 1% utilization or 7%? I ask this because I have a $500 reported balance on one of my cards with no balance on any of my other cards, bringing my total utilization to about 7%. I want to go ahead and apply for another card, but I don't know if I should wait until my statement cuts with a $5 balance or if it's totally fine to app now.

[Anonymous]

I don't think it makes a difference.

[ztnjpv]

Negligible difference if any. I have personally noticed a difference from month to month when my utlilization dropped from near 10% or over 10% to near 1%. problem there is that other little things can change from month to month. Perhaps I hit an AAoA threshold that made the perceived change in score more pronounced. Hard to say. All I can say for sure is that the idea of 1-15% being the same is hogwash.

[b_seeker]

That difference shouldn't matter for apping purposes as far as utilization matters. I'm assuming you have more cards than showing in your sig though because I'm not getting 7% on a $500 balance from that.

[LS2982]

1% or 7% I wouldn't worry about it your in good range for a app or two.

[red259]

Is there such a thing as too little utilization? I know if you are at 0% it hurts you, but what if I let something like a few dollars balance report and my utilization was .5% or something greater than zero but not quite 1%. Anyone ever have this? Would it get rounded down to zero?

[LS2982]

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@red259 wrote:

Is there such a thing as too little utilization? I know if you are at 0% it hurts you, but what if I let something like a few dollars balance report and my utilization was .5% or something greater than zero but not quite 1%. Anyone ever have this? Would it get rounded down to zero?

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I'd have it at least over 3%. 

[red259]

You know until last week I had never even heard of credit utilization! This forum has been extremely beneficial in helping me learn about how my credit works.

[528491]

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@b_seeker wrote:

That difference shouldn't matter for apping purposes as far as utilization matters. I'm assuming you have more cards than showing in your sig though because I'm not getting 7% on a $500 balance from that.

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Yep, I'm also an AU on a card with a $5000 limit. 

Another question: My $500 balance is on a $1500 limit card. So my util on that card is 33%. Is that an issue, or does only the total util matter?

[Rhaeny]

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@red259 wrote:

You know until last week I had never even heard of credit utilization! This forum has been extremely beneficial in helping me learn about how my credit works.

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Everyone's credit profile is different, so the only utili percentage that matters is what makes your own move.  This you will have to test out to see.  It seems that mine takes a ding at under 5% so go figure that one..LOL.  Anywhere from 10% to 20% it is only neglible.  At 25% is when I take a dip ( I have seen a 25pt drop).  So test out your own to see how well you fair.