Utilization - Better to Load Up on Few or Spread it Out to All CC??

[notfancy]

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@myjourney wrote:

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@Alberio wrote:

I have four credit cards - all of which I have had for at least ten years.  I utilize just over 60% of my credit.  I know that is high and I am working to reduce it.  In the meantime, assuming I need to carry that much debt for now, is it better for my credit score to spread the utilization across all the cards, or is it better for my credit score to pay off two cards (carry $0 balance) and come close to the limits on the other two?

Thanks!

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With high UTL don't worry about scores until CC's are paid down

To answer your question spread them out amoung all cards in your case

And I'll tell you why.

Fico scoring looks at UTL 2 ways

Any cards over 70% will be considered maxed out resulting in a scoring ding

Any UTL over 30% will be also see a scoring ding doesn't matter if it's one card or 4

For max scoring 1 card should be 1-9% all others should be paid in full $0

The good news is Fico scoring for UTL has no memory so each month you lower UTL you should see an increase in scores 

Hope this makes sense

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Ignore what I said, MJ has more experience than I do.

[myjourney]

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@notfancy wrote:

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@myjourney wrote:

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@Alberio wrote:

I have four credit cards - all of which I have had for at least ten years.  I utilize just over 60% of my credit.  I know that is high and I am working to reduce it.  In the meantime, assuming I need to carry that much debt for now, is it better for my credit score to spread the utilization across all the cards, or is it better for my credit score to pay off two cards (carry $0 balance) and come close to the limits on the other two?

Thanks!

---

With high UTL don't worry about scores until CC's are paid down

To answer your question spread them out amoung all cards in your case

And I'll tell you why.

Fico scoring looks at UTL 2 ways

Any cards over 70% will be considered maxed out resulting in a scoring ding

Any UTL over 30% will be also see a scoring ding doesn't matter if it's one card or 4

For max scoring 1 card should be 1-9% all others should be paid in full $0

The good news is Fico scoring for UTL has no memory so each month you lower UTL you should see an increase in scores 

Hope this makes sense

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Ignore what I said, MJ has more experience than I do.

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You said it right I just went overboard with details ...Lol

Same results

[notfancy]

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@myjourney wrote:

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@notfancy wrote:

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@myjourney wrote:

---

@Alberio wrote:

I have four credit cards - all of which I have had for at least ten years.  I utilize just over 60% of my credit.  I know that is high and I am working to reduce it.  In the meantime, assuming I need to carry that much debt for now, is it better for my credit score to spread the utilization across all the cards, or is it better for my credit score to pay off two cards (carry $0 balance) and come close to the limits on the other two?

Thanks!

---

With high UTL don't worry about scores until CC's are paid down

To answer your question spread them out amoung all cards in your case

And I'll tell you why.

Fico scoring looks at UTL 2 ways

Any cards over 70% will be considered maxed out resulting in a scoring ding

Any UTL over 30% will be also see a scoring ding doesn't matter if it's one card or 4

For max scoring 1 card should be 1-9% all others should be paid in full $0

The good news is Fico scoring for UTL has no memory so each month you lower UTL you should see an increase in scores 

Hope this makes sense

---

Ignore what I said, MJ has more experience than I do.

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You said it right I just went overboard with details ...Lol

Same results

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Lol not quite. I thought putting it all on one card but keeping it under 90% would be better than balances over multiple cards.

However, I still hope the OP can get CLIs on some cards as that would assist with UTL.

[myjourney]

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@notfancy wrote:

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@myjourney wrote:

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@notfancy wrote:

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@myjourney wrote:

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@Alberio wrote:

I have four credit cards - all of which I have had for at least ten years.  I utilize just over 60% of my credit.  I know that is high and I am working to reduce it.  In the meantime, assuming I need to carry that much debt for now, is it better for my credit score to spread the utilization across all the cards, or is it better for my credit score to pay off two cards (carry $0 balance) and come close to the limits on the other two?

Thanks!

---

With high UTL don't worry about scores until CC's are paid down

To answer your question spread them out amoung all cards in your case

And I'll tell you why.

Fico scoring looks at UTL 2 ways

Any cards over 70% will be considered maxed out resulting in a scoring ding

Any UTL over 30% will be also see a scoring ding doesn't matter if it's one card or 4

For max scoring 1 card should be 1-9% all others should be paid in full $0

The good news is Fico scoring for UTL has no memory so each month you lower UTL you should see an increase in scores 

Hope this makes sense

---

Ignore what I said, MJ has more experience than I do.

---

You said it right I just went overboard with details ...Lol

Same results

---

Lol not quite. I thought putting it all on one card but keeping it under 90% would be better than balances over multiple cards.

However, I still hope the OP can get CLIs on some cards as that would assist with UTL.

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Good point OP what cards do you have and how long have you had each?

[fltn]

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@Anonymous wrote:

Let's say that if you were doing things right, you're score wouldn't be as low as it is now.

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RUDE! Where did all of these rude people come from lately? I guess you know it all and do it right all of the time and that is why you are even on this forum? Truely sad!

[fltn]

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@n'tmegaman1 wrote:

Let's say that if you were doing things right, you're score wouldn't be as low as it is now.

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How do you not  know if it was a medical reason for the amount of credit used? Maybe OP had to travel to a funeral or a family wedding. I guess if we were all rich we really wouldn't NEED to sometimes carry a few balances. You comment just pisses me off.

For whatever reason it is try sticking to topic or don't post anything!

[fltn]

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@notfancy wrote:

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@Alberio wrote:

I have four credit cards - all of which I have had for at least ten years.  I utilize just over 60% of my credit.  I know that is high and I am working to reduce it.  In the meantime, assuming I need to carry that much debt for now, is it better for my credit score to spread the utilization across all the cards, or is it better for my credit score to pay off two cards (carry $0 balance) and come close to the limits on the other two?

Thanks!

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In general it's better to carry a balance on as few cards as possible. FICO seems to like seeing most accounts at 0 balance. However, like others have said you don't want that one card that is carrying  a balance to hit 90% or more or it will be considered "maxed" which is another ding.

Can you get them paid down as much as possible then call and ask for credit limit increases?

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+1  and if possible maybe try to get to only 2 cards but keep under 75%. That has actually helped a friend of mine. About 15 point gain. YMMV of couse.

[Alberio]

Thank you for all of the very helpful responses.  I have had each of these cards in good standing for a decade or more.  I don't want to ask for a CLI or get another card even though (at least with a CLI) I think I would get what I am asking for, because I am in the mortgage process and don't want any HPs on my record or new accounts opened. 

We were supposed to just be relying on my husband's credit and income for the mortgage, but it appears that because of the way he files his taxes and the exemptions etc., he will not meet the stringent DTI requirements without my income counting as well.  That means my credit score - to which I was taking a long-term improvement approach - is now front and center and will solely determine our eligibility for amounts and interest rates.  So I am trying to figure out what I can do in the short term to bump up my scores. 

Although I was divorced more than four years ago, for those that asked what the circumstances that led me here were - it was primarily that and the aftershocks of that.   My ex and I sold our home at a massive (several hundred thousand dollar) loss during the divorce, attorneys are expensive, and I was laid off in the midst of all that.  I was standing in the middle of the blast zone with nothing remaining of my career and my marriage.

Happily, I have completely turned all that around, but I still have major financial scars to show for it.  They are healing, but not fast enough for what I want to achieve now. 

Anyway, thanks again for all of the guidance.  It is invaluable.

[Anonymous]

You're welcome. I'm glad I was able to help.

[Mike_C]

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@Anonymous wrote:

You're welcome. I'm glad I was able to help.

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I'm glad you could help as well, but just wanted to remind people no need for snarky remarks. We're here to help people and while sometimes it is fun to be sarcastic or poke fun at others, let's try to focus on helping each other out and embracing a sense of positive community. We're all human and all make mistakes (like your/you're)