Having to Revolve a Balance

[MMart078]

Lets just a say a situation comes up where I have to revolve a balance like a health or car emergency. How should I go about it? Where should I try to keep my utilization in order to be in the best shape for a credit line increase to remain eligible for a credit line increse?

[bakalao2k]

Keeping your balance at or under 30% utilization is good.

[MMart078]

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@bakalao2k wrote:
Keeping your balance at or under 30% utilization is good.

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Where is your utilization? ( I ask because you have great scores)

[bakalao2k]

I can't recall what my utilzation was back in Feb 2009, but I was carrying a balance on 8 open accounts.  I plan on getting updated FICO scores next week because I'm currently carrying a balance on one credit card, 8K/25K.

I will be debt free in 2010!  

Message Edited by bakalao2k on 01-28-2010 07:27 PM

[Anonymous]

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@bakalao2k wrote:

I can't recall what my utilzation was back in Feb 2009, but I was carrying a balance on 8 open accounts.  I plan on getting updated FICO scores next week because I'm currently carrying a balance on one credit card, 8K/25K.

I will be debt free in 2010!  

Message Edited by bakalao2k on 01-28-2010 07:27 PM

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good job!!!!!!!!!!!!!!

[MarineVietVet]

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@bakalao2k wrote:
Keeping your balance at or under 30% utilization is good.

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Under 10% is even better. FICO High Achievers average about 7% util.

From a BK years ago to:
7/09 TU-742 EQ- 779
8/09 TU-765 EQ- 783
9/09 EX pulled by lender 802

You can do the same thing with hard work.

[MMart078]

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@MarineVietVet wrote:

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@bakalao2k wrote:
Keeping your balance at or under 30% utilization is good.

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Under 10% is even better. FICO High Achievers average about 7% util.

From a BK years ago to:
7/09 TU-742 EQ- 779
8/09 TU-765 EQ- 783
9/09 EX pulled by lender 802

You can do the same thing with hard work.

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At what range do you think lenders start to get concerned about not granting a credit limit increase?

[Anonymous]

It depends on the lender.  Different lenders have varying levels of comfort.

But 35% and 50% are significant utilization threshholds.  Many conservative lenders don't like anything at 25% or higher.

PSECU & NFCU have granted generous CL's to those with high utilization, where PenFed has declined CLI or declined application due to balances.  You have to match lenders based upon your circumstances.

IMO  IME 

[Jazzzy]

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@MMart078 wrote:
Lets just a say a situation comes up where I have to revolve a balance like a health or car emergency. How should I go about it? Where should I try to keep my utilization in order to be in the best shape for a credit line increase to remain eligible for a credit line increse?

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Utilization is an important factor when asking for a CLI. Remember, however, that income also plays a part. They will want to know that you have the income to pay the balances due. In other words, you can have very low utilization, but depending upon what other debt you have, you can still be declined.

[haulingthescoreup]

And remember that FICO scoring and lenders don't necessarily look at util the same way. As txjohn mentioned, 35% and 50% might be significant tiers for FICO, but lenders might pick completely different figures. They don't know or much care about how the FICO scoring formulas treat util. They have their own comfort levels.

One way that many of us have been able to get CLI's is with a balance transfer. Somehow lenders seem to beam approvingly on these, maybe because they're getting their BT fee, as opposed to seeing you run up your card on purchases. I got a CLI from BofA after doing a BT that put me at 80% or something.

Doing an unneeded BT is a pretty drastic (and expensive) way of angling for a CLI. But I did want to throw that out there.