I would say that it is important, but of course, it is possible to acheive relatively high FICO scores with ludicrious utilization. I'm a prime example having acheived 750 FICO scores with 80% revolving CC utilization between two cards with one of them MAXED. And I've been this way for over TWO YEARS.
However, out of my $30k revolving CC debt, I very recently paid off one card completely at $11.6k and my FICO score 8 went up 30 points between the two bureaus that reported it, Equifax and Transunion. Experian hasn't reported yet.
With $30k revolving CC debt, which constitutes 80% utilization and one card at 99% utilization and have been at this state for over two years!
Equifax: 756
Transunion: 738
Experian: 745
As of last week, paid off one card completely @ $11.6k and the other card is still at 99% utilization but my overall CC utilization dropped to roughly 54%.
Equifax: 785 (+29)
Transunion: 768 (+30)
Experian: 745 (hasn't reported)
My 99% card has been paid off as well, but it hasn't reported or shown up at all. This payoff was a result of my Lending Club loan, which also hasn't shown up, so I'm curious what reversal (if any) my score will take once it does show up. Bear in mind that I have perfect payment history for almost twenty years, ever since I first got credit.
I recently took out a car lease and that didn't impact my score one iota. No change yet showing an almost $30k balance.
