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CC UTIL question

New Contributor

CC UTIL question

Is it important to have each of your tradelines under 30% utilization or is it acceptable to have an overall utilization of below 30% with a card or two over that amount?

26 years old

Wells Fargo Platinum - $1500
Chase Sapphire Preferred - $8500
Discover it® Card - $9600
AMEX EveryDay - $8000
Chase Freedom - $5000
Capital One QuicksilverOne - $1900
Barclaycard Apple Rewards - $600
Chase Slate - $1500
Capital One Platinum - $750

Lease - Audi Financial Services - $33,887 cur. balance, $55,063 orig. balance, buy rate money factor, MSRP $83,365
Auto Loan - Bank of America - $59,953 cur. balance, $60,668 orig. balance
Auto Loan - Alliant Credit Union - $61,728 cur. balance, $63,473 orig. balance
Auto Loan - Flagship - orig. $20,617, paid/closed

Installment - FNCU - Secured $1500 paid/closed
Installment - City National New Jersey (Self Lender) - Secured orig. $1000, paid/closed
Installment - Lead Bank (Self Lender) - Secured orig. $545, paid/closed

Equifax - 645
TransUnion - 627
Experian - 669
4 REPLIES 4
Valued Contributor

Re: CC UTIL question

It's best to have your overall utilization under 8.9% and no card over 28.9%.

 

Some people practice the AZEO method where all cards report a balance of zero at statement time except one in which that card has a small balance. $15-20 or so.  Just don't let all cards report zero or fico will penalize you

 

I, personally, don't do AZEO...i let all my cards report a small balance, but each of my cards is under 7-8% as well as my overall utilization.

July 2020
Experian Fico 8. 707
Transunion Fico 8. 705
Equifax Fico 8. 724

Capital one QS1. $2450
Discover IT Cashback. $12,000
PNC cash rewards signature Visa. $17,500
Chase SW rapid rewards signature visa $6900
Amex Green Card NPSL POT $11,000

Amex Hilton Honors $1000
Citi Rewards $3900
Message 2 of 5
Community Leader
Senior Contributor

Re: CC UTIL question

Just to clarify, "under 30%" means 28.9% or below. That's because FICO rounds all percentages up. 29.0000001% would round up to 30% and would no longer be "below 30%."

 

All cards at 28.9% or below indicates "responsible" borrowing. It's a great look when applying, and it generally puts one in FICO's second best scoring tier. Going over 28.9% on an individual card is fine from time to time. If you're doing it fairly frequently, you might want to consider requesting limit increases on those cards.

Message 3 of 5
Super Contributor

Re: CC UTIL question


@HeavenOhio wrote:

If you're doing it fairly frequently, you might want to consider requesting limit increases on those cards.


In the case of a Transactor I definitely agree with this.  In the case of a Revolver, though, CLIs are really a band-aid to the bigger underlying issue of less responsible use of credit (spending more than you're able/willing to pay).

Message 4 of 5
Community Leader
Senior Contributor

Re: CC UTIL question

Supposedly, the best is when your overall is under 9% and each individual is under 29%. However, I decided to stop getting too hung up on the numbers and just try to keep my balances as low as I can without driving myself crazy lol 

Discover It: 19.7k
Amex ED: 18k
Citi DC: 7.7k
FNBO Rewards Visa: 3.2k
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Once you go Berner, you never go back.
Message 5 of 5
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