Seeking advice on how to improve credit when utilization is high

[Expansion]

FinStar recommended I come over here and post.

I am looking to improve my credit. 

My utilization is high (85.6%) because of a very rough period a while back where I had to use my cards to cover my butt. 

My credit has been established since 2001.

651 Equifax,

675 TransUnion,

not sure about my Experian. 

I always pay on time.  What's tanking my score is the high utilization.  

Adding this in for context:

My situation is stable.  My income is stable and growing.  My business is full with a waitlist. 

I don't need credit right now.   I'm in a position where I have the mental space and energy to work on this.   I am not pursuing bankrupcy, that's not my path.  Respect to those who do, but that's not where I'm at.  

I would appreciate any suggestions.

Right now I am continuing to steadily pay things down.   I haven't added to my balances for several years now.  

Also, I am, over time, getting small consolidation loans (first one through lending club paid off, second one through upstart just begun) to move utilization off the credit cards and also reduce the APRs.  

Because there have been times when I was approved for something unexpectedly -- lending club when I was in much worse position than I am now; upstart this past November -- I wanted to reach out to those who have a better sense of the terrain, if there are opportunities I might not be aware of that might be worth exploring.

Here's what I've got: 

CreditOne MC  -- using 0 of 1750 limit, 24.4%

CreditOne Visa -- using 0 of 650 limit, 23.65%

Chase Slate using -- 0 of 1750 limit, 22.99%

Citi Double Cash: using 0 of 500 limit, 22.99%

Navy Federal Visa Platinum:  using 9,163 of 10,000 limit, 15.99%
Bank of America Visa: using 1,062 of 1,100 limit, 14.99%
AmEx Blue: using 2,831 of 4,000 limit, 14.24%

Santander Sphere: using 4,373 of 5,000 limit, 13.73%

Mercury Mastercard: using 2,803 of 3,300 limit, 12.99%

Discover it Blue: using 11,777 of 12,500 limit, 12.99%

Wells Fargo Platinum: using 7,391 of 8,000 limit, 10.99%

Bank of America BankAmericard Rewards Visa Platinum Plus: using 13,665 of 15,500, 9.90%

Barclay Ring: using 6,350 of 6,750 limit, 8%

Citi Diamond Preferred (closed over 10 years ago because I had the option to keep the 5.24 APR and close the account, or keep the account open and the APR went up to triple or quadruple that): 1,142.15 balance (limit is 0 since it's closed), 5.24%

I also have:

a 6,500 loan through Lending Club that was paid off 10/2021

and

11/2021 I got an 8,000 loan through Upstart for 36 months, and I've made the 2 monthly payments so far.  (so utilization on that is 7427 of 8,000).  

Miraculously I was approved for that Upstart loan, which I used to pay off my highest-rate cards.  

Around the time I paid off the Lending Club loan and got the Upstart loan, my TransUnion Fico Score 8 bumped from "Just under 'good'" where it had been hanging out for years, to "officially good" (like a solid 672).  

My overall goals:

-increase my limits so my utilization goes down, and also, so I have elbow room if there's an emergency

-decrease my APRs 

-be able to be approved for new credit

-and pay all this stuff down

Ideas on what would be a doable, smart next move?

I just got approved for a second Lending Club loan but the rate (19.94%) is higher than any of the credit cards I would use the loan to pay off, so it doesn't really make sense.  It's also annoying because a few months ago when my scores weren't as high and my utilization was worse, they offered me a 15% rate.  

[CH-7-Mission-Accomplished]

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@Expansion wrote:

FinStar recommended I come over here and post.

I am looking to build my credit. 

My utilization is high (85.6%) because of a very rough period a while back where I had to use my cards to cover my butt. 

My credit has been established since 2001.

651 Equifax,

675 TransUnion,

not sure about my Experian. 

I always pay on time.  What's tanking my score is the high utilization.  

Here's what I've got: 

CreditOne MC  -- using 0 of 1750 limit, 24.4%

CreditOne Visa -- using 0 of 650 limit, 23.65%

Chase Slate using -- 0 of 1750 limit, 22.99%

Citi Double Cash: using 0 of 500 limit, 22.99%

Navy Federal Visa Platinum:  using 9,163 of 10,000 limit, 15.99%
Bank of America Visa: using 1,062 of 1,100 limit, 14.99%
AmEx Blue: using 2,831 of 4,000 limit, 14.24%

Santander Sphere: using 4,373 of 5,000 limit, 13.73%

Mercury Mastercard: using 2,803 of 3,300 limit, 12.99%

Discover it Blue: using 11,777 of 12,500 limit, 12.99%

Wells Fargo Platinum: using 7,391 of 8,000 limit, 10.99%

Bank of America BankAmericard Rewards Visa Platinum Plus: using 13,665 of 15,500, 9.90%

Barclay Ring: using 6,350 of 6,750 limit, 8%

Citi Diamond Preferred (closed over 10 years ago because I had the option to keep the 5.24 APR and close the account, or keep the account open and the APR went up to triple or quadruple that): 1,142.15 balance (limit is 0 since it's closed), 5.24%

I also have:

a 6,500 loan through Lending Club that was paid off 10/2021

and

11/2021 I got an 8,000 loan through Upstart for 36 months, and I've made the 2 monthly payments so far.  (so utilization on that is 7427 of 8,000).  

Miraculously I was approved for that Upstart loan, which I used to pay off my highest-rate cards.  

Around the time I paid off the Lending Club loan and got the Upstart loan, my TransUnion Fico Score 8 bumped from "Just under 'good'" where it had been hanging out for years, to "officially good" (like a solid 672).  

My overall goals:

-increase my limits so my utilization goes down, and also, so I have elbow room if there's an emergency

-decrease my APRs 

-be able to be approved for new credit

-and pay all this stuff down

Ideas on what would be a doable, smart next move?

I just got approved for a second Lending Club loan but the rate (19.94%) is higher than any of the credit cards I would use the loan to pay off, so it doesn't really make sense.  It's also annoying because a few months ago when my scores weren't as high and my utilization was worse, they offered me a 15% rate.  

---

You are seriously well into bankruptcy territory.   You owe a lot of money to a lot of people.   You do not need to open up anything else -- even for "elbow room" should something come up.  You are way past that point.  Something has come up already.   What is your monthly or annual gross income?   Do you have any assets, like a house?  

I know how this movie is likely going to end and if you have to pull the plug, you should do so sooner rather than later and not keep throwing good money after bad.   Talk to a lawyer.   The only goal on your list should be "pay all this stuff" off or get it discharged and start over.  If you are eligible for a chapter 7, I would jump on that -- like Monday morning.  You are in too deep and you still think your problem is lowering your APRs and getting more credit.  Just stop.

[Brian_Earl_Spilner]

There's nothing to build. You already have a bunch of cards and loans. Only thing that's going to help your score is paying everything down.

[Anonymalous]

---

@Expansion wrote:

My overall goals:

-increase my limits so my utilization goes down, and also, so I have elbow room if there's an emergency

-decrease my APRs 

-be able to be approved for new credit

-and pay all this stuff down

Ideas on what would be a doable, smart next move?

---

Your first 3 goals are unachievable. Lenders are going to look at that utilization, and run away screaming, even if you manage to increase your scores a little. In fact, expect to be balance chased. As you pay down the credit cards, there's a good chance they'll lower your limits. You're way past red flag territory. The only credit you should be considering is credit consolitation loans. Sounds like you've looked at a few fintech companies. Another option is a credit union, they might be more friendly. Or they may not, because that's seriously high utilization.

You really need to sit down and figure out what you owe, your cash flow, and what you can pay off. Looks like you owe about $60,000. How much do you make, and how much can you spend each month to pay it off? Cut everything non-essential. Considering moving to somewhere cheaper, or selling assets. From your APRs, it looks like you had pretty good credit, in the not so distant past. As a result of that, you're only paying about 12% in interest, overall. Which isn't bad, but it still amounts to about $8,000 just to service the interest, each year. You need to pay more than that to even start reducing what you owe.

From your credit limits, you probably have a reasonable income. So there's a good chance you can pull it off. But it's going to require serious belt-tightening, and discipline. To start, get all the cards above 90% down below 90%. Then pick one, and reduce it to 68% or so, then move to the next.

[FinStar]

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@CH-7-Mission-Accomplished wrote:

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@Expansion wrote:

FinStar recommended I come over here and post.

I am looking to build my credit. 

My utilization is high (85.6%) because of a very rough period a while back where I had to use my cards to cover my butt. 

My credit has been established since 2001.

651 Equifax,

675 TransUnion,

not sure about my Experian. 

I always pay on time.  What's tanking my score is the high utilization.  

Here's what I've got: 

CreditOne MC  -- using 0 of 1750 limit, 24.4%

CreditOne Visa -- using 0 of 650 limit, 23.65%

Chase Slate using -- 0 of 1750 limit, 22.99%

Citi Double Cash: using 0 of 500 limit, 22.99%

Navy Federal Visa Platinum:  using 9,163 of 10,000 limit, 15.99%
Bank of America Visa: using 1,062 of 1,100 limit, 14.99%
AmEx Blue: using 2,831 of 4,000 limit, 14.24%

Santander Sphere: using 4,373 of 5,000 limit, 13.73%

Mercury Mastercard: using 2,803 of 3,300 limit, 12.99%

Discover it Blue: using 11,777 of 12,500 limit, 12.99%

Wells Fargo Platinum: using 7,391 of 8,000 limit, 10.99%

Bank of America BankAmericard Rewards Visa Platinum Plus: using 13,665 of 15,500, 9.90%

Barclay Ring: using 6,350 of 6,750 limit, 8%

Citi Diamond Preferred (closed over 10 years ago because I had the option to keep the 5.24 APR and close the account, or keep the account open and the APR went up to triple or quadruple that): 1,142.15 balance (limit is 0 since it's closed), 5.24%

I also have:

a 6,500 loan through Lending Club that was paid off 10/2021

and

11/2021 I got an 8,000 loan through Upstart for 36 months, and I've made the 2 monthly payments so far.  (so utilization on that is 7427 of 8,000).  

Miraculously I was approved for that Upstart loan, which I used to pay off my highest-rate cards.  

Around the time I paid off the Lending Club loan and got the Upstart loan, my TransUnion Fico Score 8 bumped from "Just under 'good'" where it had been hanging out for years, to "officially good" (like a solid 672).  

My overall goals:

-increase my limits so my utilization goes down, and also, so I have elbow room if there's an emergency

-decrease my APRs 

-be able to be approved for new credit

-and pay all this stuff down

Ideas on what would be a doable, smart next move?

I just got approved for a second Lending Club loan but the rate (19.94%) is higher than any of the credit cards I would use the loan to pay off, so it doesn't really make sense.  It's also annoying because a few months ago when my scores weren't as high and my utilization was worse, they offered me a 15% rate.  

---

You are seriously well into bankruptcy territory.   You owe a lot of money to a lot of people.   You do not need to open up anything else -- even for "elbow room" should something come up.  You are way past that point.  Something has come up already.   What is your monthly or annual gross income?   Do you have any assets, like a house?  

I know how this movie is likely going to end and if you have to pull the plug, you should do so sooner rather than later and not keep throwing good money after bad.   Talk to a lawyer.   The only goal on your list should be "pay all this stuff" off or get it discharged and start over.  If you are eligible for a chapter 7, I would jump on that -- like Monday morning.  You are in too deep and you still think your problem is lowering your APRs and getting more credit.  Just stop.

---

Let's get off our judgement high horse, please. 

The OP shared their situation so the community can provide some guidance on getting the higher utilization under an ideal level, not be chastised over what they intend to do. If you can't provide any meaningful advice, then all this does is a disservice to everyone who posts here. BK is not for everyone and we've seen countless threads of members who were able to get things under control with the advice of very helpful individuals.

Offer solutions not doomsday scenarios @CH-7-Mission-Accomplished. If the OP was contemplating BK of any sort, that would have been mentioned above in their op or they would have posted in the BK section. We don't have to look very far to see testimonials from folks who overcame these issues.

[FinStar]

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@Brian_Earl_Spilner wrote:

There's nothing to build. You already have a bunch of cards and loans. Only thing that's going to help your score is paying everything down.

---

The OP is simply looking for ways to get their utilization to an acceptable level so they can start building up their business credit profile. Maybe this isn't a Gucci moment for celebration, but at least the OP provided their information so that helpful members of the community could guide them with a viable strategy for chipping away at their debt.

[Expansion]

Hey FinStar, I really appreciate you stepping in here. 

My situation is stable.  My income is stable and growing.  My business is full with a waitlist.  I don't need credit right now.   I'm in a position where I have the mental space and energy to work on this.   I am not pursuing bankrupcy, that's not my path.  Respect to those who do, but that's not where I'm at.  

I would appreciate any suggestions.

Right now I am continuing to steadily pay things down.   

Also, I am, over time, getting consolidation loans (first one through lending club paid off, second one through upstart just begun) to move utilization off the credit cards and also reduce the APRs.  

Because there have been times when I was approved for something unexpectedly -- lending club when I was in much worse position than I am now; upstart this past November -- I wanted to reach out to those who have a better sense of the terrain, if there are opportunities I might not be aware of that might be worth exploring.

[Anonymalous]

---

@Expansion wrote:

Hey FinStar, I really appreciate you stepping in here. 

My situation is stable.  My income is stable and growing.  My business is full with a waitlist.  I don't need credit right now.   I'm in a position where I have the mental space and energy to work on this.   I am not pursuing bankrupcy, that's not my path.  Respect to those who do, but that's not where I'm at.  

I would appreciate any suggestions.

Right now I am continuing to steadily pay things down.   

---

I think everyone had good intentions. You didn't mention your business or that you were in good shape on the income front, and your post had a lot of warning signs. But I'll reiterate my suggestion to check with a credit union. Especially if you can provide proof of a solid and growing income, they might be very willing to extend you a loan. Beyond that, I'd suggest the avalanche over the snowball method. You really need to get the highest balances down, before you start paying off any completely.

One positive is once you have the utilization under control, your credit scores should bounce back.

[Expansion]

@Anonymalous, I went ahead and added that extra context to the original post so people can see it from the beginning.  

[Expansion]

@Anonymalous "To start, get all the cards above 90% down below 90%. Then pick one, and reduce it to 68% or so, then move to the next."

thank you, this is helpful.  I went ahead and ran all my numbers and there are only 5 cards over 90%.  Three of them the extra amount needed to get it down to 89% is actually pretty small.   This feels like a doable action!