I assume you will get some hits for Inqs and new credit to offset the reduced util
SerenityBound wrote:Hi, all.I was just approved for a 4K nrewards MC card from NFCU...my new best friend! I also was approved for 2 other low limit dept store cards.At any rate, with the inception of these new cards my util is going from 103% to 23%. According to the simulator I could see anywhere from a 40-60 pt hike.It also suggested that by transferring my current 3 low lim cc's to the new card I could see anywhere from a 60-80 pt hike! I wasn't aware that BT's could bring such a reward.I just got a 150+ hike on CRs across the board! Could I truly potentially see another 100+ just with these two scenarios?! Seems unreal but if that's the case then I'm doing the BT's as soon as I get my new card!Thanks for sharing.
MidnightVoice wrote:I assume you will get some hits for Inqs and new credit to offset the reduced util
You are probably right. FICO does not like a maxed out card, and prefers the debt spread.To be honest, I am not sure why, as the logical thing to do if one is going to carry a balance is to do it all on the lowest interest card.But FICO sense and fiscal sense do not always agree.
cheddar wrote:I guess we have to accept the assumption that in Fair Isaac's years of research, they have determined that individual util is a predictive factor.
cheddar wrote:They don't just make this stuff up, as much as it sometimes seems like they do.
gatoravi8tor1 wrote:For what its worth I have noticed score increases when debt was spread more evenly among cards, and keeping overall utilz below 15-20%. Not as much increase when utilz was between 1-15 %.