Yet another utilization question...

[Anonymous]

Regarding utilization...is it correct to say:
if util > 60% = bad ?
if util is between 30%-60% = less bad to OK
if util is between 10% - 29% = better
if util is around 10% = best
if util 9% = diminishing returns?

I ams trying to figure out my personal sweet spot for utilization, we probably cannot keep up 10%, but better around 20%-30%...just trying to find out for my plan...

Thanks all!

[Anonymous]

Under 50% is mandatory

Under 30% better- (a 40 point differnce in my bucket between 23% and 43% utl-

80 point difference between 7% and 43%. 

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HinH wrote:
Regarding utilization...is it correct to say:
if util > 60% = bad ?
if util is between 30%-60% = less bad to OK
if util is between 10% - 29% = better
if util is around 10% = best
if util 9% = diminishing returns?

I ams trying to figure out my personal sweet spot for utilization, we probably cannot keep up 10%, but better around 20%-30%...just trying to find out for my plan...

Thanks all!

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[Anonymous]

Thank you sir!

I am here (BAL/HC):

Orchard Bank CC: $290 / $300 (usually pay 3/4's twice a month)

AA Juniper CC: $750/$800 (pay $200 or so every two weeks)

Home Depot (in store CC): $1400/$1500 (just bought 400sq/ft of tile and tile saw)

Dell Preferred: $1000/$1500

So I want to pay the Home Depot and Dell off or down to $200 balance, and then be able to use other two cards without getting dinged too hard.

Paid off = $1100 (if two CC's are maxed) / 4100 = 25%

$200 left = $1500 / 4100 = %36.6

I am at 620 (FICO/EQ) and need to be around 680 for the best refi terms (dropping PMI, etc...). So I am going to get my util straight and go after a couple of older baddies...

One question though...do they count individual utilization or overall or a combination of both?

anywho...thanks to all for helping me get this far...

[Anonymous]

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HinH wrote:

One question though...do they count individual utilization or overall or a combination of both?

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Great question.  Both, and they count about equally.

 Also keep in mind you'll get a little boost by letting fewer than half of your acounts report a balance at the same time.

Message Edited by cheddar on 02-28-2008 07:50 PM

[Anonymous]

OK, Thanks Cheddar... I need to write down/remember statement dates and pay down before they release my statement...interesting game...lol.

[Anonymous]

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HinH wrote:
OK, Thanks Cheddar... I need to write down/remember statement dates and pay down before they release my statement...interesting game...lol.

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Yes, it is an interesting (and fun?) game for the first few months.  Then it gets to be a real PITA really fast.

This is why most here advise only playing this game when you need a score boost because you will be applying for something in the next few months.  Otherwise this game is usually more hassle than it's worth.

Sounds like you have the right idea, though.  Just don't forget that even though you'll be making a payment before the statement date, you'll still need to make a payment after the statement date and before the due date, as well.  Wouldn't want you to be marked with a late because you were paying more attention to the FICO-reporting payment at the expense of the actual payment due.

Message Edited by cheddar on 02-28-2008 08:00 PM

[Anonymous]

"Then it gets to be a real PITA really fast."

This is very true- this why some get thier CL's up high enough that they have great UTL all the time-

Most of my CC's only give 20 to 25 days grace- I want to use it.

I have not paid any interest on anything but my mortgage in 6 months-

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cheddar wrote:

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HinH wrote:
OK, Thanks Cheddar... I need to write down/remember statement dates and pay down before they release my statement...interesting game...lol.

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Yes, it is an interesting (and fun?) game for the first few months.  Then it gets to be a real PITA really fast.

This is why most here advise only playing this game when you need a score boost because you will be applying for something in the next few months.  Otherwise this game is usually more hassle than it's worth.

Sounds like you have the right idea, though.  Just don't forget that even though you'll be making a payment before the statement date, you'll still need to make a payment after the statement date and before the due date, as well.  Wouldn't want you to be marked with a late because you were paying more attention to the FICO-reporting payment at the expense of the actual payment due.

Message Edited by cheddar on 02-28-2008 08:00 PM

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[rom828]

Interesting, Cheddar.....didn't know about the 0 balances actually helping...thought you had to have something showing, though I still prefer 0!!

How much of a boost are we talking if fewer than half have no balances?!

I really need to concentrate on my 2 credit cards that are currently 70-80% so that's really going to be my focus, but....

if I can get a little increase paying off the little store/calatogue cards, all the better!

My scenario:

Newport News           $0/670 CL

Metrostyle                   40/500 (using 90 day deferred billing, pay no interest)

Old Navy                    60/200 (opened 11-07, took 2 point hit, took another 5 when $80 reported 02-08)

Chadwicks                270/880 (using 90 day deferred billing)

Brylane                         0/250

Orchard  MC               1000/1390

Orchard Visa               900/1150

I took a 2 point hit when new (10-08) mortgage reported (finally) last month, so with the Old Navy minuses, my score went from 629 to 620EQ.  Since I'm right onthe edge with that 620, every little bit would help!!

I know I have to get the Orchards down and that's my plan...figure it will take me about 3 months to get to the 50% mark and 6-9 to pay off.

Will it help much if I go ahead and pay off Old Navy, Metro and about 1/3 Chadwicks this month,  which is what I was planning to do as I don't like to have balances on store cards anyway,  or would I it be better to throw more at Orchard  (we'd be talking about $170  over and above the $150 per Orchard card I will be making). 

And I'm also still a little confused with utilization as far as whether it's on average or per card..I know you say it's some of both, so I don't know the best route to go.  When I'm working on these Orchard cards, will it be better to concentrate on one and pay it off first, or pay them both down equally? Do I need to have them below 50% to see any score increase?!

As always, I appreciate your ...both your replies to me personally and all your good posts!!

Message Edited by rom828 on 03-05-2008 08:43 AM

[rom828]

Now I'll be the PITA and hound you (and anybody else that wants to join in!!)  for advices in response to my previous post.  Guess this is a 'bump' (?!?!)

Actually, I am trying to get whatever boost I can as we hope to do mtg refi (to get some cash out from euqity for needed repairs.upgrades) so every little bit will help.

That's why I'm anxious for help as far as what will give me the most 'bang for my buck' when making these cc pyts..

As advised in another post when I was inquiring about citi /discover cc in hopes of increasing util (which you and Sylvia both said wait so I will!!)......

I have a collection that supposed to come off in April which I hope gives me a few points, my mortgage will be 6 mos old in april (wont that help?!!--took a 2 point hit when it finally reported last month), and  I want to pay these revolving accts in the way that should help my score the most the quickest.

Any advices will really be appreciated!!

[Anonymous]

Well, here's what I've gathered from my obsessive reading of these boards:

- under 50% util is essential.

- 1 - 9% util is best.

- fewer than half of CCs should have balances, and balances should be 1 - 9%.

So, it would seem to me that if you paid off those lower balance cards this month, then you'd have fewer than half of your CCs showing a balance. Caveat: I don't know how much of an increase you'd see from that, given your high util overall. Then I'd focus on getting the remaining balances under 50%, and then again under 9%.

I'm fairly new to this, compared to others on the boards, but this is the strategy I'm taking. So far I've seen about a 20 point bump in EQ, working on my util (I've gone from approx 55% util to 25% util overall). YMMV, as I believe they say.