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Is 30% utilization the only one that matters?

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tsoismycat
New Member

Is 30% utilization the only one that matters?

My husband and I are evaluating our finances and credit scores. The only major negative factors are 3 cards with near 95% utilization. 

On our quest to pay down debt, we combined a boat load of cards with small balance/ high interest onto 3 cards with 0 for 18 months. 

It was great on our minimum payment and is so nice to see that all the money we pay on the cards goes right to the balance, we're making headway pretty quick now. BUT, It majorly jacked our scores. Theyre now around 630-640. 

In about 6 months I wanted to trade in my car for a cheaper payment and refinance my student loans.

 

However, I'm worried now with the drop that it's going to be hard to do any of those things. 

I hear that 30% is a magic number but do any other ratios matter? Will 75% instead of 95% look better? 50%? 

What score increases have you seen at different utilization's? 

Thanks! 

5 REPLIES 5
AllZero
Mega Contributor

Re: Is 30% utilization the only one that matters?

Seek AZEO.

 

Optimal is

1-29% reported individual utilization.

1-9% reported aggregate utilization.

 

I would recommend reading the below from ABCD2199
The Truth about Credit Card Utilization
My 11 Rules to Credit Rebuilding
FICO Score: What to pay down first?

From Birdman7
General Scoring Primer and Version 8 Master Thread rev.5.17.20

Message 2 of 6
Girlzilla88
Valued Contributor

Re: Is 30% utilization the only one that matters?

85% and above is 'maxed out' under 80 (79% is better than that, 49% and below is better still, but yes as agreed with above 29% and below is best with the 8.9% or so for the other or lower ((Definitely not 0 for everything though))







Message 3 of 6
Anonymous
Not applicable

Re: Is 30% utilization the only one that matters?

Actually 79% and 85% hold no significance. The thresholds are at 9% 29% 79% 69% 89% and 100%. With individual beginning at the second threshold as noted above.
Message 4 of 6
Anonymous
Not applicable

Re: Is 30% utilization the only one that matters?

I've had my score dip 1 point because I went from less than 5 to 29%. I think 30 is kind of the benchmark of where you want to be. But honestly just do your best to pay it down, 94 is better than 95, 50 is better. Payment history and how much you owe count for 65% of your score. Keep chipping away! ☘️

Message 5 of 6
Anonymous
Not applicable

Re: Is 30% utilization the only one that matters?

You can never tell the cause of one point. With that said you can go up to 29% as long as you don’t cross it.
Message 6 of 6
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