@mikelo22 wrote:I had a quick question about utilization. Is it utilization more about overall % utilization taking into account all of your credit lines combined? Or is Utilization more on a per-card basis? Obviously my goal is to stay below 10%, but I was wondering if it would be okay to go slightly over that on cards that I am using more often at the time (such as Chase Freedom/Discover and their revolving categories).
Both, one should not exceed 30% of any cards individual CL. idealy you want only 1 card reporting a balance to the CRAs of 1-9% of its individual CL for best Fico score results.
It's both.
You want your overall UTI to be less than 30%... but any card(s) reporting maxed limits will also hurt your score.
Using my 9 cards as an example... I have 6 reporting $0 balance... 1 reporting 5% UTI... And 2 reporting 40% UTI.
My overall UTI is 22%.
Like said in the previous post though... it doesn't really matter unless you are planning on apping soon. FICO has no UTI memory so if you max out your cards and your score drops this month you can pay them off next month to get the points back that you lost.
Although FICO scoring has no memory, 90% util will matter if your banks take adverse action against you.
@sexy_kitten7 wrote:Although FICO scoring has no memory, 90% util will matter if your banks take adverse action against you.
When I said it doesn't really matter I was referring to the utilization game... as mentioned in the post before mine.
It's common knowledge that 90% UTI doesn't look good and could definitely bring AA... especially if you have a card from Barclay and they SP you every month like they've done me for the last 9 months since I opened the account.
Definitely both. Aim for >10% both individually and overall.
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sexy_kitten7 wrote:
Although FICO scoring has no memory, 90% util will matter if your banks take adverse action against you.
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This is correct. One point of clarification though...I do not think one month at 90% will get you AAed (at least with most lenders). Normally what lenders worry about is when you max out and STAY maxed out.
BUT you definitely want to get the balance down ASAP.
Although FICO scoring has no memory, 90% util will matter if your banks take adverse action against you.
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This is correct. One point of clarification though...I do not think one month at 90% will get you AAed (at least with most lenders). Normally what lenders worry about is when you max out and STAY maxed out.
BUT you definitely want to get the balance down ASAP.
@Focused10 wrote:Definitely both. Aim for >10% both individually and overall.
I guess you mean <10% (less than).
