cancel
Showing results for 
Search instead for 
Did you mean: 

Utilization what is best way to decrease?????

tag
traveler2005
Established Contributor

Re: Utilization what is best way to decrease?????

Thanks everyone for the great advice!!!




Starting Score: TU 573 Exp 523 Lender Pull, Eq 583
Current Score: TU 673, Exp 664.,Eq 672 04/17/2015 TU 741 Equifax 682 Experian 678

Goal Score: 700 across the board


Take the FICO Fitness Challenge

Last HP 6/10/2015
Message 11 of 16
silverzgirl
Regular Contributor

Re: Utilization what is best way to decrease?????

In my case, the smaller balances have the highest interest and vice versa. If you are gardening, then score won't matter for now, so all of the above is correct.

Starting FICO, June 2010: EX-581, EQ-581, TU-581
Now: EX-742 EQ-710 TU-709

Currently: NFCU Platinum Visa 18K, BECU Visa 15K, Navchek 15K, Vystar+ CU Platinum Visa 10000, AMEX Delta SkyMiles 9K, Military Star 8200, Nordstrom VS 7800, Macys 7600, Lowes 6K, Pier 1 6K, Mohawk Floor 4500, TJX Mastercard 4K, Pottery Barn 4K, Amazon 3600, Talbots 3000, Barclaycard 2400, Ann Taylor 2280, Ballard Design, 1500, Victorias Secret 750, NY&CO 500, J.Crew 300



Message 12 of 16
traveler2005
Established Contributor

Re: Utilization what is best way to decrease?????

I am trying to get aboit 20 points added to trans union score by october. Need new vehicle! Financing with CU. Score of 680 puts me in their "A" credit catagory with 100% financing if necessary and 2.5% interest rate.




Starting Score: TU 573 Exp 523 Lender Pull, Eq 583
Current Score: TU 673, Exp 664.,Eq 672 04/17/2015 TU 741 Equifax 682 Experian 678

Goal Score: 700 across the board


Take the FICO Fitness Challenge

Last HP 6/10/2015
Message 13 of 16
CashOnDelivery
Established Contributor

Re: Utilization what is best way to decrease?????


@traveler2005 wrote:
I am trying to get aboit 20 points added to trans union score by october. Need new vehicle! Financing with CU. Score of 680 puts me in their "A" credit catagory with 100% financing if necessary and 2.5% interest rate.
20 points seems manageble in 3 months. Some people need 20 points in a month and that itself could be a challenge for some. I hope it all works out for you!

2010: 475 EQ 2011: 503 EQ 2012: 600 EQ2013:632 EQ
Starting Score: 634 EQ-3/13/13
Current Score: 706 EQ-8/29/13 703 EX-7/12/13 705 TU-8/9/13
Goal Score: 700

Take the myFICO Fitness Challenge
Message 14 of 16
takeshi74
Senior Contributor

Re: Utilization what is best way to decrease?????


@traveler2005 wrote:

would it help scores if I brought down the cards that do exceed the 90% to around 50% so that utilization on a single card is scored better, so it isn't considered maxxed out?


Yes but I wouldn't recommend worrying about your scores until you've seriously dropped your overall utilization -- unless high utilization on specific cards is putting you at risk of limit drops (has happened to me with high utilization).  Your scores really don't matter until you're ready to start applying.  It can be a bit more satisfying to see the scores drop but I'd focus on avoiding interest first as you won't be applying for anything anyway.

Message 15 of 16
Walt_K
Senior Contributor

Re: Utilization what is best way to decrease?????


@RushXTC wrote:

someone told me to line all your accounts up from highest debt to lowest, and begin backwards... highest debt, pay minimum while you throw more than minimum at the low debts so you can pay off accounts faster, then when you're down to the high debt accounts, throw what you'd usually throw at the small ones to that, plus extra and you'll lower your UTI in no time.


This is called the snowball method.  Because you are starting with lowest balance rather than highest APR, it will actually end up costing you more in interest than if you begin with the highest APR regardless of balance.  The reason people advocate for the snowball method is not that it is the most efficient way to pay down your debts, it's not.  

 

However, it can be psychologically satisfying to see those lowest balances disappear, and then to be able to throw more money per month at the higher balances.  Because it can be satisfying to push through those low balances quickly, it can encourage people to stick with their debt management goals and not get back into a bad habit of spending beyond their means.  So for some people, even though it is not the most efficient method, it works better because it encourages them to stick with the program.  That is the allure of the snowball method.

 

If you are not worried about being disciplined and you want to pay the least amount of interest, you prioritize by APR paying the highest APRs first. 


Starting Score: ~500 (12/01/2008)
Current Score: EQ 681 (04/05/13); TU 98 728 (01/06/12), TU 08? 760 (provided by Barclay 1/2/14), TU 04 728 (lender pull 01/12/12); EX 742 (lender pull 01/12/12)
Goal Score: 720


Take the FICO Fitness Challenge
Message 16 of 16
Advertiser Disclosure: The offers that appear on this site are from third party advertisers from whom FICO receives compensation.