cancel
Showing results for 
Search instead for 
Did you mean: 

Question about Utilization Rate

Highlighted
Established Member

Question about Utilization Rate

Since rebuilding, I'm borderline OCD about my credit scores and paying bills early - even on non-credit items.

I know the golden rule is the to keep utilization as low as possible, never more than 30% at the highest.  I'm somewhere around the 14-15% rate.

Will dropping it even further to say 5% make a significant difference in my scores?  I'm tending my garden right now and aging some newwer lines. 

5 REPLIES 5
Highlighted
New Contributor

Re: Question about Utilization Rate

9% and below is what you want to shoot for.

Message 2 of 6
Highlighted
Member

Re: Question about Utilization Rate

Below 10%, as Matt said, is what you want to aim for. 

I've heard many others say this, and it's also empirically where I've observed my highest scores on a month-to-month basis.

Starting Score: [700 TU] (08/13/2014), Current Score: [762 TU][766 EQ][737 EX] (09/27/2016)
Discover It: $16,200
Amex Blue Cash Everyday: $49,800
Citi Double Cash: $30,800
BankAmericard Cash Rewards: $24,700
Chase Freedom: $20,100
Message 3 of 6
Highlighted
Valued Contributor

Re: Question about Utilization Rate

You are scored on both overall revolving utilization and individual card utilization.

 

Points that I personally have seen improvements over the years related to utilization:

Below 90% (anything at or above 90% is considered MAXXED)

Below 70%

Below 50%

Below 30%

Below 10% (meaning 9% or less).

Message 4 of 6
Highlighted
Regular Contributor

Re: Question about Utilization Rate

the lower you go the more your score will go up... maybe just a point or two, but it will go up.




Message 5 of 6
Highlighted
Senior Contributor

Re: Question about Utilization Rate


@mikeyj6627 wrote:

I'm somewhere around the 14-15% rate.

Will dropping it even further to say 5% make a significant difference in my scores?


No idea.  Drop it, monitor your scores and see.  It will help to some degree but whether or not 14-15% to 5% would yield a significant scoring change for you isn't something we can really tell you and also depends on what you specifically mean by "significant" (how many points and for what specific scoring model?).  I'd expect a fair bit of improvement for a drop of ~10% but not a drastic change like from going from 40% to 10%, for example.

 


@mikeyj6627 wrote:

I'm tending my garden right now and aging some newwer lines. 


Then why the fuss over it?  There's really no benefit to worrying over it unless you're apping for new credit and you can drop it when you get to that point.  Still, your time, your call.

 


@mikeyj6627 wrote:

Since rebuilding, I'm borderline OCD about my credit scores and paying bills early - even on non-credit items.


Obsessive != OCD

Message 6 of 6
Advertiser Disclosure: The offers that appear on this site are from third party advertisers from whom FICO receives compensation.