Utilization Question

[Anonymous]

I have a question about utilization, im trying to stay under 30% for maximum credit score boost and i have 3 cards, each with a $300 limit. So technically 30% of 900 would be $270. Does that mean if 2 of my cards are reporting a 0 balance that i can have the other one $270, since that would be under 30% of my total available credit?, Or is it 30% on each individual card? thank you

[Anonymous]

For maximum scoring, your utilization should be 9% or less. Anything 30% or more (on one card) will drop your score. I had one card report 60% (my overall utilization was under 9%) and my score dropped 15 points. I got that card to 39% and I only gained 6 points back. I'm hoping once I get that card under 30% I'll get the rest of my points back.

[Anonymous]

Agreed JustMe. I noticed large score increases when I got my overall utilization down to 8%. Not easy, but worth it.

[chasing8s]

I agree.  I monitor my utilization per card as well as overall.  Before I learned the rules, I also witnessed the per card usage > 30% quickly impact my scores.  Once you pay down the balance below the high util mark, your scores will rebound but a little slower than they dropped, imho.

[Anonymous]

I track my overall utilization and each card's utilization.  I just got a RoomsToGo card, and bought a couch.  That card (I applied that same day), was instantly at 57%, which lowered my score about 15 points even though my overall utilization is about 13%.  I only have one other card above 40% (43%, and one over 20% (26%).  The rest are 20% or under (most are 0%) balances.

So yes, overall and individual both impact your score.

[takeshi74]

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@Anonymous wrote:

Does that mean if 2 of my cards are reporting a 0 balance that i can have the other one $270, since that would be under 30% of my total available credit?, Or is it 30% on each individual card?

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Both individual and overall matter but, as stated above, for maximum scoring benefit you want revolving utilization to be as low as possible.  30% is a suggest maximum as in "do not exceed".

With low limits it's going to be tricky to keep utilization low.  I don't recommend worrying over it aside from keeping it at 30% or less.  Once you've built some history and are ready and in shape to app for new credit you can look into optimizing.