Utilization question

[Sitori]

I was wondering if someone can tell me how soon utilization affects your credit score. If it went up pretty high during the holidays and it's now (per the most recent statement) down to around 25-30%, how long does it take to affect the score's on your credit report? Is it factored in on the next statement, or does it take a few months to affect the score?  I'm planning on applying for Care Credit in the next couple months, that's why I'm wondering. I don't want to apply  if my scores dropped due to UTL.

I did however just get an auto CLI on my amazon card--from 1200-2200 at the 3rd statement. woohoo. So my total CL is somewhere around 6000.  I'm pretty sure I owe around 1500-2000.  I have no idea how UTL affects the score( how many points drop or go up).

If Care Credit  is GE and I have a GE amazon card  with a $2200 CL with a 200$ balance on there as of now, will they take that into account? Does having credit with the same company help or hurt you when applying for more credit?

Sorry for all the questions, I'm pretty new to this.

Thanks for the help

[ninjamike81]

it will change your util. as it hits your reports.  most likley a couple days after the statement.  before I app for anything I get my overall util below 10 %  and only have the remaining balance left on one card " normaly my highest limit card"  to keep that cards util low too.

[Sitori]

So say I pay everything down below 10% in one month,  my scores will show that on the next month?

After reading some one else's post regarding their usage and how many points they dropped, I'm pretty scared to run a report. lol.  If I'm currently around 30% does anyone know how that affects scores? I was at 700 as of November...and then christmas came...sigh...

[ninjamike81]

if you pay the balances down before the statement cuts. when the statement cuts it will report the balance to the CRA normaly will show up a couple days after that.   try to have all but 1 card report zero balance.  as far as your score it "should" go up as util goes down there is no set rate everyones profile is different

[kk627]

I paid down my cc from 80% to 40% this month and as soon as they reported to the CRA, my score jumped by 30 points.

[ninjamike81]

when I got my cards in sept I maxed them out to 85-90% each paying off baddies from my dw reports.  I have them down to 50% "$600"on one card all the rest are zero I will be pulling a new report soon hopeing to be in the 720 after its all said and done  and with ALL her baddies gone she should be near 700 too

[Walt_K]

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@Sitori wrote:

So say I pay everything down below 10% in one month,  my scores will show that on the next month?

After reading some one else's post regarding their usage and how many points they dropped, I'm pretty scared to run a report. lol.  If I'm currently around 30% does anyone know how that affects scores? I was at 700 as of November...and then christmas came...sigh...

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Generally, that is correct.  It might be sooner, might be a little longer depending on when in the billing cycle you pay.  Here is what generally happens.  Lenders typically only report once a month, and most lenders report your statement balance.  Once your statement is generated, they will report to the CRAs around that time, it may take a couple days, but regardless, they will report what is on your bill.  Then it takes a few days to a week for the CRAs to update.  In my experience, Experian generally updates first, followed by Equifax, then Transunion.

So, if you pay your balances down right after your bill cuts, you'd have to wait the full month for the next statement, followed by a few days to a week for it to update on each report.  Could be over a month before everything has updated.  If, on the other hand, you make a large payment right before your next bill is cut, you could see the effects in a few days to a week. 

[Sitori]

Oh Nice!! 30 points! woo! That's good to hear.

Ok well I've been paying on all 3 at the same time. Maybe I should just focus on 2 of them and then slowly pay down the others. I'm backwards though...I have the smallest balance on my highest limit card and the highest balance on the lowest limit card. haha. woops.  Stupid cap1 is only $1000 CL and I'm pretty sure its sitting around $500 right now.  My Discover is $1700 CL and there's around 1000 on there right now. I guess I should choose one and pay it down.

So if my statement posts on say the 8th, it's the same every month right? So I should try and pay on it a few days before that date?

[zerobacan]

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@Sitori wrote:

Oh Nice!! 30 points! woo! That's good to hear.

Ok well I've been paying on all 3 at the same time. Maybe I should just focus on 2 of them and then slowly pay down the others. I'm backwards though...I have the smallest balance on my highest limit card and the highest balance on the lowest limit card. haha. woops.  Stupid cap1 is only $1000 CL and I'm pretty sure its sitting around $500 right now.  My Discover is $1700 CL and there's around 1000 on there right now. I guess I should choose one and pay it down.

So if my statement posts on say the 8th, it's the same every month right? So I should try and pay on it a few days before that date?

Statement days varies, because your billing cicle might be 28, 29 somethimes 25 days, and the months have 30, 31 and 28 months. so be careful counting.