Utilization; Decreased by CLI?

[Anonymous]

Hi if my UTI % is dropped due to not paying of existing balances but increasing of exisiting limits does that = same score increase?

[Anonymous]

It could if your balances used decreased or stayed the same and depending on the total increase in the limits. It's usually not much from what I can see from my daily monitoring 

[lg8302ch]

Yes but only once it gets reported ...whatever impact the new util % has. Hope this is just a technical question because util reduction should not be attacked like this 😀

[takeshi74]

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@Anonymous wrote:

Hi if my UTI % is dropped due to not paying of existing balances but increasing of exisiting limits does that = same score increase?

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It's like any other fraction.  Revolving utilization is balance(s) / limit(s).  You can decrease the numerator (balance[s]) and/or increase the denominator (limit[s]) to make it smaller.  What mattters is the %.

That said, you still want to reduce debt versus simply relying on CLI's and you certainly need to make at least the required payments.

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@lg8302ch wrote:

Yes but only once it gets reported ...whatever impact the new util % has. 

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Right -- a scoring model refers to the data in the report.  It's the balances and limits on the report that matter.  The scoring models does not have access to current account information.

[Anonymous]

Just paying a few thousand today but I know NFCU AR is next Monday so wondering if I should pay balance down on another card since the NFCU card, pending approval, will see a "decrease" in its uti%.

[Chris679]

Pay down the higher interest rates first to save money. If they are all equal then sure lower the utilization on each card.

[Appleman]

If the goal is to improve the score, pay attention to how your score improves as you drop the utilzation percentage. 

90% and above = Maxxed out

I have found the following % thresholds have improved my scores (YMMV)

Below 70%, 50%, 30% and 10%.