staying under 10%

[Anonymous]

I know that staying under 10% utilization is where you should be on your revolving accounts, but can you expect a drop in score if one month you are at 4% utilization and the next month you are at 8% utilization?

I get the scorewatch alerts--the latest one saying I have a balance increase on one of my accounts (it is well under 10% so it doesn't matter, but the alert said that there was a balance increase. MY score went up, but they said it was due to other factors, like payment history improving.

So what is the deal? Can we expect scores to go down if there is any balance increase on any account, even if it is under 10% utilization?

[fused]

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rifleman wrote:
I know that staying under 10% utilization is where you should be on your revolving accounts, but can you expect a drop in score if one month you are at 4% utilization and the next month you are at 8% utilization?

I get the scorewatch alerts--the latest one saying I have a balance increase on one of my accounts (it is well under 10% so it doesn't matter, but the alert said that there was a balance increase. MY score went up, but they said it was due to other factors, like payment history improving.

So what is the deal? Can we expect scores to go down if there is any balance increase on any account, even if it is under 10% utilization?

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No under 10% is under 10%.  If I recall you were approved for some CCs, what are the CLs on these.  More available credit will help your util %.

[Anonymous]

Yes I was approved for some CC's recently

first was AMEX Delta w/ $1000 limit. request online CLI, now limit is $2000
second was Exxonmobile personal Gas card $300 limit. requested CLI new limit is $600
Third was CITI w/ $7000 limit

So if the score is under 10%, your score should go up...if it goes over 10% it should go down, right?

Message Edited by rifleman on 06-28-2007 12:08 PM

[MidnightVoice]

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rifleman wrote:


So if the score is under 10%, your score should go up...if it goes over 10% it should go down, right?

Message Edited by rifleman on 06-28-2007 12:08 PM

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Yes, but you have just added a bunch of inqs (score down) and opened 3 new accounts (score down) and reduced the average age of your accounts (score down).

So who knows how it will all pan out in the mind that great FICO computer, Deep Thought. 

[fused]

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rifleman wrote:
Yes I was approved for some CC's recently

first was AMEX Delta w/ $1000 limit. request online CLI, now limit is $2000
second was Exxonmobile personal Gas card $300 limit. requested CLI new limit is $600
Third was CITI w/ $7000 limit

So if the score is under 10%, your score should go up...if it goes over 10% it should go down, right?

Message Edited by rifleman on 06-28-2007 12:08 PM

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Keeping all of your cards between 1-9%, you will get max FICO points. You won't lose much if it's a bit over 10%, but again it's not going to give you max points.  This applies to each card as well as all your cards cumulatively.

[Anonymous]

so far, the inquires have had a minimal effect on my score--in fact my score has not gone down at all. My guess is this is because I had some other negative info removed from my report and it has cancelled out the effects of the new inquiries. So I'm not worried about inquiries having an effect.

I am interested in what effect the three new revolving accounts will have-how much the score will take a hit from that due to average age--my average age right now is 6 years

And why would my account take a score hit by opening 3 new accounts (excluding the inquiries they generate and the effect on average age of account)

Message Edited by rifleman on 06-28-2007 12:33 PM

[2anewu]

That is so confusing b/c first fico says open new accounts and then ---when you do-- you pay for it with drops in your score. I can't wait to see what my scores are like after everything updates on my report. How long will it take to for the new cc to show up?

[smallfry]

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@2anewu wrote:

That is so confusing b/c first fico says open new accounts and then ---when you do-- you pay for it with drops in your score. I can't wait to see what my scores are like after everything updates on my report. How long will it take to for the new cc to show up?

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It varies. Some report before you get your card others may take two months sometimes more.