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Utilization Question????

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UpAndComing74
Regular Contributor

Utilization Question????

Hello all!! I want to pick your brain for a moment.  I currently have 5 credit cards and 1 Furniture store account thats counting as Revolving.  Im at a 614 TU right now and I would love to be at 660 for a new auto at the end of the month.  My cards are as follows:

 

1. Target--171--200 Limit  85%

2. Credit Union-3950-4000 limit 98%

3 Cap1-790-Credit Limit 750  105%

4 Cap 1-547 Credit Limit 500  109%

5 HSBC-1139 Credit limit 1100-103%

6 Tidewater 2280  2400 Credit Limit--95%

 

Ive paid the Target, Cap 1, Cap1 and HSBC to zero.  They should report within the next two weeks. With those 4 cards brought to zero and the other two still maxexd out....will I recieve a score bump at all!  Just looking for 46 TU points here!!

 

Thanks,


Starting Score: 614
Current Score: 614
Goal Score: 700


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Message 1 of 15
14 REPLIES 14
UpNComing
Established Contributor

Re: Utilization Question????

Nice name Smiley Tongue

CSP ($5k); Chase MileagePlus Explorer Visa Sig. ($6k); Chase Freedom Visa Sig. ($6k); BankAmericard Cash Rewards Visa Sig. ($5k); Amex PRG (NPSL); Amex BCE ($1k); Citi Thank You ($5.4k); Barclay Apple ($4.2k) CapOne Cash ($2.5k) CapOne Platinum ($2.5k) Wells Fargo Home Project Visa ($10.3k) Discover IT ($1.5k) WalMart ($3k); Lowes ($3k); Amazon ($5k); Kohls($1.5k)

Scores: Equ Fico 715 ~ Exp 724 ~ TU Fico 682
Message 2 of 15
FrugalRican
Blogger

Re: Utilization Question????

6230/8950 = 70%

 

That'd still be your overall utilization, and that's still pretty high with two remaining balances.

 

How much further down can you bring that?

 

Follow my financial journey: http://www.frugalrican.com


EQ FICO (01/16/2012): 656 - EQ FICO (02/16/2012): 743 - EQ (02/24/2012): 760 - EX (04/28/2012): 739 - GOAL 2013: 800+

AMEX BCE (0/10K) --- BOA 1-2-3 (0/15.9K) --- Discover More (0/6K) --- Chase Freedom Visa (0/1.4K) -- Hyatt Visa Sign. (0/5.8K) -- Barclay's NFL Card (0/7.5K) -- Chase Sapphire Preferred (0/5K)

Message 3 of 15
castlefox
Regular Contributor

Re: Utilization Question????

Yes paying down your delt will help your credit score. 

 

70% is rather high, ideally they would like to see under 20% or even lower.

 

 

MyFICO score- Equifax - 12.03.11 - 780 Experian 12.03.11 - 763
(FAKO Scores) EXP PLUS Score Dec 2011. 748
Advanced Risk Score 2.0 (NextGen) 793 Dec 2010
Vantage Score (2011) MAR = 771 Jun = 771 Sept= 788 Dec= 773
2012 MAR = 782 JUN=783 Dec = 789
2013 Mar-796 Jun-799 Dec- 797
Message 4 of 15
UpAndComing74
Regular Contributor

Re: Utilization Question????

So its an overall utilization and not individual cards.  I somehow thought reporting zeros on 4 of them would help. But in answer to your question..as of now I have about $1000 more to throw at them, but dont know if that would help.  I dont need max rise at this point, I only need 46 points. Im just hoping Util from 105% to 70% does the trcik.


Starting Score: 614
Current Score: 614
Goal Score: 700


Take the FICO Fitness Challenge

Message 5 of 15
FrugalRican
Blogger

Re: Utilization Question????

Throwing down $1,000 would only get you to about 58%. The difference between 70 and 58 is probably not as noticeable as if you got it under 50%.

 

You might be better off saving that $1000 for the downpayment.

And yes, the utilization is based on overall utilization, although it "helps" to have those cards at 0 because it won't look as bad when you go for the loan process.

Follow my financial journey: http://www.frugalrican.com


EQ FICO (01/16/2012): 656 - EQ FICO (02/16/2012): 743 - EQ (02/24/2012): 760 - EX (04/28/2012): 739 - GOAL 2013: 800+

AMEX BCE (0/10K) --- BOA 1-2-3 (0/15.9K) --- Discover More (0/6K) --- Chase Freedom Visa (0/1.4K) -- Hyatt Visa Sign. (0/5.8K) -- Barclay's NFL Card (0/7.5K) -- Chase Sapphire Preferred (0/5K)

Message 6 of 15
UpAndComing74
Regular Contributor

Re: Utilization Question????

Yep, thats what I figured.  Didnt want to throw it all at the cards just in case a down payment made it look better.  Thanks! I was approved through my CU at 11% but 46 points will jump my tier and allow 6%.


Starting Score: 614
Current Score: 614
Goal Score: 700


Take the FICO Fitness Challenge

Message 7 of 15
castlefox
Regular Contributor

Re: Utilization Question????

I thought your FICO reflected you total utilization percentage as well as individual card utilization. 

MyFICO score- Equifax - 12.03.11 - 780 Experian 12.03.11 - 763
(FAKO Scores) EXP PLUS Score Dec 2011. 748
Advanced Risk Score 2.0 (NextGen) 793 Dec 2010
Vantage Score (2011) MAR = 771 Jun = 771 Sept= 788 Dec= 773
2012 MAR = 782 JUN=783 Dec = 789
2013 Mar-796 Jun-799 Dec- 797
Message 8 of 15
FrugalRican
Blogger

Re: Utilization Question????

11% is not bad.

Just wait and see what happens once the scores reflect the newest 0 balances.

 

You could always just pay 11% for 6 - 10 months and later try to refi at a better rate.

Follow my financial journey: http://www.frugalrican.com


EQ FICO (01/16/2012): 656 - EQ FICO (02/16/2012): 743 - EQ (02/24/2012): 760 - EX (04/28/2012): 739 - GOAL 2013: 800+

AMEX BCE (0/10K) --- BOA 1-2-3 (0/15.9K) --- Discover More (0/6K) --- Chase Freedom Visa (0/1.4K) -- Hyatt Visa Sign. (0/5.8K) -- Barclay's NFL Card (0/7.5K) -- Chase Sapphire Preferred (0/5K)

Message 9 of 15
MarineVietVet
Moderator Emeritus

Re: Utilization Question????


@UpAndComing74 wrote:

So its an overall utilization and not individual cards.  I somehow thought reporting zeros on 4 of them would help. But in answer to your question..as of now I have about $1000 more to throw at them, but dont know if that would help.  I dont need max rise at this point, I only need 46 points. Im just hoping Util from 105% to 70% does the trcik.


It's both overall and individual utilization. Plus scoring looks at the number of total accounts reporting a balance at the same time.

 

So you'll be helped by:

 

* Less than half of your revolving accounts reporting balances

* Overall utilization lowered

* Individual utilizations lowered

 

But you'll still be hurt by:

 

* A very high overall utilization at 70%

* Two cards that are still maxed out

 

I think you will see an overall increase in your score but in my opinion you won't get 46 points from this. But the only way you'll know for sure is wait for everything to update.

Message 10 of 15
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