Over-limit accounts and effect on credit score

[Anonymous]

I have only had 2 late payments on my credit ever. One was 30 days late and the other was 60 days. One of them was 20 months ago and the other about 22 months ago. I have had 3 of my 8 accounts just a few dollars over their limit for the past few months. and I am using about 70% of my available credit, and my score is about 600. I am thinking that my score should be much higher even considering the fact that I am using 70% of the available credit. Just from the fact that about 3 years ago it was 705 and my balances were lower. 

How much are those 3 accounts really effecting my credit score? A finance manager at a car lot that I know said they are lowering my score as much as 30%.. is this accurate at all?

[marty56]

Getting your util down to 9% with 1 card reporting a balance at 9% could push your scores over 700.

[Junejer]

Hi Goldberg, welcome to the forums. Please read credit score 101, if you haven't already done so. With the lates inside of two years, I doubt that it's costing you 30% (or 180 points), but I could be wrong.

Anyway, you are being murdered by having three accounts OTL. In my bucket, I get about 8-10 points per 10% of util. I can see that you are losing 80-100 points easily.

Also, where did you get your score? Did you get it from here, the auto dealer or elsewhere?

[Anonymous]

I figured my score was really getting reamed with those 3 OTL accounts. I got a score of 600 through Equifax..

Any idea of how much it would up my score when I get those 3 accounts under their limits?

[Junejer]

Just getting them under the limit, isn't going to be that great a deal, IMO.

The thresholds that we surmise exist are as follows:

If over limit, bringing under limit = a couple of points

Under 80-85% (maxxed) = a couple of points

First positive boost at <50%, <30%, <10%.

1%-9% will afford you the best possibility of getting the greatest score hops. Some even report that they find a sweetspot at 1%, 3% or 5% util. My scores don't change with util between 1%-9%.

[PayYouNever]

 Goldberg, One can't estimate how much your score will jump, the 8-10% UTL = 10 points is a interesting gauge. However, it'll take like 3 months for your scores to go up regardless of what you. That being said, UTL makes up something lilke 30% of your score and OTL accounts could bring you down 100 points or more.

Think about this way, to get a score below say 500 is extremely difficult to achieve;so there's only like 300 points on the scale. If UTL makes us 1/3 then 100 points of your score is affected by being OTL. Your UTL could be over 100% with OTL accounts and that STINGS.

Pay down the debt -- you don't want debt in this economy anyways, you're actually paying more to service the debt than you think, as the dollar deflates, prices deflate and the interest rates drop, but APRs skyrocket...

[Junejer]

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PayYouNever wrote:

 Goldberg, One can't estimate how much your score will jump, the 8-10% UTL = 10 points is a interesting gauge. However, it'll take like 3 months for your scores to go up regardless of what you. That being said, UTL makes up something lilke 30% of your score and OTL accounts could bring you down 100 points or more.

Think about this way, to get a score below say 500 is extremely difficult to achieve;so there's only like 300 points on the scale. If UTL makes us 1/3 then 100 points of your score is affected by being OTL. Your UTL could be over 100% with OTL accounts and that STINGS.

Pay down the debt -- you don't want debt in this economy anyways, you're actually paying more to service the debt than you think, as the dollar deflates, prices deflate and the interest rates drop, but APRs skyrocket...

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Why do you say that?  If he pays down his overall and ind util to 9% or less before his next statement cuts, the CCCs will report the new balances to the CRAs and the scores will respond immediately.  There is no lag time.  FICO has no "memory", if you will, of poor util.

[Anonymous]

This is a slightly diffrerent question regarding over the limit staus. Does anyone know if the start of the first delinquency for reporting purposes can be determined to have started at the time an account first goes over the limit (interest and fees) and never again gets below it's designated limit? In other words does the fact that the account is over it's  limit make it delinquent for reporting purposes?

Any thoughts or opinions?

[Junejer]

Hi rob22, this sounds like two different questions/scenarios. The short answer to your last question is no. The more drawn out explanation is that as long as you make your payment on time, it can't be reported as past due. If you never get below the limit, as in not paying the bill, then, yes, obviously it's a delinquent account. Hope that this answers your questions...somewhat.

[Anonymous]

 A few years ago when my credit utililzation was still about 70% and I had an auto loan, my EQ score

was 705. I'm sure the auto loan was keeping it up a little bit. Also I didin't have any late payments at all.

Now, I have 2 that were about 1 yr 11 months ago and thosee 3 accounts that are otl