NEEDCREDITADVISE wrote:
Hello Forum,
Please give me some advise I don't understand util %
Without you All this wouldn't be possible Here are My Stats, please let me know if I should close some accounts or let them be ,,Thanks in Advance I'm open to hear whatever
Penfed $20,000 bal $16,000 -- 80% util: yikes!
Discover $2,000 bal $0 -- 0%
Orchard $1,550 bal $0 $39.00 Annual fee -- 0%
Cap1 $2,000 bal $0 $39.00 Annual fee -- 0%
Chase $3,150.00 bal $0 -- 0%
Dillard Amex$ 2,600 bal $0 -- 0%
Dillards $3,000 bal $0 -- 0%
Jared $7,500 bal $0 -- 0%
Student Loan bal $11,000 -- installment; irrelevant to discussion
Car loan bal $12,000 -- installment; irrelevant to discussion
Penfed Check line of credit $500.00 -- I assume a $0 balance?
Trans 695 Exp 645 Eq 694
No LATES THANK GOD
OK, total util is $16,000 / $41,800 = 38%.
I wouldn't touch a thing until you have that PenFed balance paid way, way down. Many of us with multiple accounts have found that we can get away with high util on one account, but high util on a second account will hurt your scores. But even though you only have the one account with a balance, it's so high that your total util is too high as well.
You need to get the PenFed down low enough to where your overall util is at 9% or less. If you didn't close any cards, that would mean a balance of $3762 or less, assuming that you continue to report $0 on all your other cards.
Even more importantly, you do not want to alarm PenFed by keeping this crazy-high balance for very long. Since it is far and away your highest CL card, you want to continue to make nice with them.
As for the auto loan and student loan, just keep paying timely on them. Although installment util is looked at a tiny bit, it's in a separate category from revolving (CC) util. You'll get much more bang for your buck by getting your CC util down to a tiny amount.
Hope that helps!
eta: sorry, I meant to say that once your total util is down, you can look at closing the fee cards. If you close them now, your total util will go up, even if your balances don't go up. The best timing on closing fee cards is to go for the month before they're due to charge you again. Make sure that a $0 balance displays, and print that screen out and save it. (I'm such a cynic!)
Otherwise, I don't see any point in closing the non-fee cards. Let them continue to build good history for you, and air them out often enough to keep them from being closed by the issuers.
Looking at your balances again, did you BT balances from the other cards to the PenFed? That would explain it, if so.
Message Edited by haulingthescoreup on 01-15-2009 03:42 AM
* Credit is a wonderful servant, but a terrible master. * Who's the boss --you or your credit?
FICO's: EQ 781 - TU 793 - EX 779 (from PSECU) - Done credit hunting; having fun with credit gardening. - EQ 590 on 5/14/2007
