Question on cc utilization

[Anonymous]

I notice a lot of discussion on the 1-9% utilization rule. Just curious what type of bump in FICO score you all have seen when keeping utilization under 10% from month to month. Woody

[fused]

Unlike payment history, there is no such thing as historical CC util percentages. If someone has util over 10% then pays it down 1-9% they might see an upward movement in their scores only one time. If scores continue to improve month to month it's for other reasons.

[Anonymous]

The more you charge the lower your score goes. It is temporary from month to month. Activity is best, so even 1 charge will force a payment update. You start to loose points as your balance increases. Generally under 10% moves the score about 10 points. Over 10% and the score starts dropping faster and can drop more than -100 points. A very inaccurate way of thinking is 12 points for ever 10%, but it can give you an idea.

[SpecFile]

So if a person that has no revolving credit opens a few CCs and keeps the balances between 1-9% what might they expect score wise?

[Anonymous]

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@SpecFile wrote:

So if a person that has no revolving credit opens a few CCs and keeps the balances between 1-9% what might they expect score wise?

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Right away a possible point loss due to new account/inquiry. After 6 months a possible (up to and in between but no guaranty) 40+ increase. After 12 months another 10-20+ increase. After 2 years more.

Message Edited by ilovepizza on 08-24-2007 02:59 PM

[SpecFile]

Thanks for the info Pizza!

[Anonymous]

I appreciate the info. Thanks.