Individual card utilization doesn't matter but zero balances do...

[Ausfarm]

Okay,

I'm not trying to challenge the wisdom of those on this forum, but I've read 2 things that get repeated over-and-over again on the forums that aren't necessarily consistent with my FICO experience. 

First,  I've read all over these forums that BOTH individual cc utilization and overall cc utilization matter to your FICO score.  My FICO EQ score is a 799 and one my cards is reporting 80% utilization.  You would 80% utilization would kill the possibility of having a FICO score that high, but nope.  [By the way, my avg acct history is 8 years --I'm still in my twenties (okay, barely).  So, it's possible to get a high FICO score and not be in "old timer" as I read some place].

Second, I've also read that carrying a balance of 1-9% is better than having a zero balance.  My Cap1 cc which has a CL of $2000 was reporting a $105 balance (5% utilization).  B/c Cap1 refused to give a CLI (even when I called the back-door number), I decided to pay it off and just not use it.  2 days ago, my Cap1 reported the zero balance.  My Fico EQ score, previously a 788, jumped 11 points to a 799.

Go figure...

In case you were wondering, my current overall utilization is 14%.

Message Edited by Ausfarm on 11-26-2007 12:16 PM

[SonorityGenius]

Congrats on the high score!!

.. no comment to the other points.

it is widely accepted because thats what FICO advises and touts on its education pages.

Each individual report is unique; I am sure you have other great things going on besides that 80% utl.. (maybe overall CL is much higher combined?)

[fused]

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Ausfarm wrote:

Okay,

I'm not trying to challenge the wisdom of those on this forum, but I've read 2 things that get repeated over-and-over again on the forums that aren't necessarily consistent with my FICO experience. 

First,  I've read all over these forums that BOTH individual cc utilization and overall cc utilization matter to your FICO score.  My FICO EQ score is a 799 and one my cards is reporting 80% utilization.  You would 80% utilization would kill the possibility of having a FICO score that high, but nope.  [By the way, my avg acct history is 8 years --I'm still in my twenties (okay, barely).  So, it's possible to get a high FICO score and not be in "old timer" as I read some place].

Second, I've also read that carrying a balance of 1-9% is better than having a zero balance.  My Cap1 cc which has a CL of $2000 was reporting a $105 balance (5% utilization).  B/c Cap1 refused to give a CLI (even when I called the back-door number), I decided to pay it off and just not use it.  2 days ago, my Cap1 reported the zero balance.  My Fico EQ score, previously a 788, jumped 11 points to a 799.

Go figure...

In case you were wondering, my current overall utilization is 14%.

Message Edited by Ausfarm on 11-26-2007 12:16 PM

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What is CL on the CC reporting 80% util?

[Ausfarm]

CL is 3500.  The balance is 2800. 

[Anonymous]

You're certainly an anomaly.  An exception the rules, I suppose.

good going though!

[fused]

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Ausfarm wrote:

CL is 3500.  The balance is 2800. 

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When you look at your reports what does the account Type say? Does it say revolving, installment or home equity loan?

[Anonymous]

I have to agree with the OP.  I had the same experience.  Now it is NOT wise to carry a balance on all cards, that will ding you (I should know, accidently let one too many report this month).  Better to rotateto keep them figuring in the scoring system.

BTW my high balance card is a Cap 1 for 0% for life.

Get any one card to 90% and you will be slapped.  But this is what I have been saying all along..no one listens to me

Message Edited by Brammy on 11-26-2007 04:28 PM

[Ausfarm]

When you look at your reports what does the account Type say? Does it say revolving, installment or home equity loan?

The account type is revolving.

Message Edited by Ausfarm on 11-26-2007 01:42 PM

[Ausfarm]

I agree Brammy.  I think the key is to have (depending on the number of cards you have) 1 or 2 reporting and the rest showing a zero balance.  Of course, try to keep util below 9% and charge the zero cards every once in a while to keep them reporting. 

Your 90% util theory is interesting.  Utiilization that high seems like risky credit behavior.  So, it makes sense to get dinged if you're using 90% of any card. 

[haulingthescoreup]

Maybe the two of you are in a bucket where util (within reason) on one card doesn't matter that much. The BT Bunch Bucket, perhaps.

Note: this is my new explanation for everything mysterious that happens in my life: it's my bucket. Two gorgeous Argentinian floor installers came to my house today to install my new hardwood flooring, tore out all the carpeting, and left, saying that I needed a special kind of glue manufactured only in the Mines of Moria and delivered semi-annually by those few who can escape the Balrog. The reason? it's my bucket.