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1 Card 45%? Or 2 Cards: 40% & 15%?

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Frequent Contributor

1 Card 45%? Or 2 Cards: 40% & 15%?

So, I have a 0% offer on my Platinum right now that has about 40% utilization on it, with it being the only card that will be reporting a balance as of next month and planning from here on out.  I need to make 1 more purchase that will either add about 5% more to that or have a 2nd card report 15ish% instead.  I don't plan on doing anything any time soon other than a CLI here and there.  I realize that the score doesn't really matter that much since I have no intentions of anything new anytime soon, but would still like to minimize damage here.  From what I gather, having the 2nd card report will probably cost around 5 points in a perfect world (I believe anyways).  Not sure what having just 1 report 45% instead of 40% would do, if anything.  Just not sure which scenario would be better here.

Any advice would be greatly appreciated!

BK7 Discharged 12/16


EQ8/9: 696/730 | TU8: 738 | EX8: 733
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Super Contributor

Re: 1 Card 45%? Or 2 Cards: 40% & 15%?

An individual card going from 40% to 45% utilization would likely have no impact on FICO score based on the individual card utilization, but you need to consider your before/aggregate utilization with the 5% increase... which would of course be the same change whether you increase that one card 5% or put those dollars across multiple cards.  Aggregate utilization is King to individual card utilization. 

 

What you need to consider if deciding to take on another "account with a balance" is how many accounts with a balance (and percentage) you have before/after adding 1 more.  If it's a significant change, (say) going from 2 out of 5 total accounts to 3 out of 5 total accounts it would be more meaningful than if you had 20 open accounts and were going from 2 out of 20 to 3 out of 20.  Just something to keep in mind.  

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Frequent Contributor

Re: 1 Card 45%? Or 2 Cards: 40% & 15%?


@BrutalBodyShots wrote:

An individual card going from 40% to 45% utilization would likely have no impact on FICO score based on the individual card utilization, but you need to consider your before/aggregate utilization with the 5% increase... which would of course be the same change whether you increase that one card 5% or put those dollars across multiple cards.  Aggregate utilization is King to individual card utilization. 

 

What you need to consider if deciding to take on another "account with a balance" is how many accounts with a balance (and percentage) you have before/after adding 1 more.  If it's a significant change, (say) going from 2 out of 5 total accounts to 3 out of 5 total accounts it would be more meaningful than if you had 20 open accounts and were going from 2 out of 20 to 3 out of 20.  Just something to keep in mind.  


Ok, thanks!  I know for the most part, aggregate utilization plays the larger role.  Just read something on here while trying to figure this out, that each card reporting a balance tends to hit ya for a handful of points at the very least.  So wasn't sure if that was still entirely accurate and/or if there would actually be any difference between 40 and 45, since it seems like the next marker is 50ish%(+).

 

It's going to be going from 5 with a balance to X (either the 1 or 2) with about 7-8% aggregate out of 12 open cards.  So, my aggregate will still be in a good place.  So would be 2/10, which is a bit worse off than 3/20 from your scenario.  So thinking that the 1 would be better?

BK7 Discharged 12/16


EQ8/9: 696/730 | TU8: 738 | EX8: 733
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Super Contributor

Re: 1 Card 45%? Or 2 Cards: 40% & 15%?

It honestly probably doesn't matter with your profile, so I'd just roll with whatever you feel most comfortable with.  Any point difference if there is even one would be a few points at most, definitely nothing to worry about.

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Frequent Contributor

Re: 1 Card 45%? Or 2 Cards: 40% & 15%?


@BrutalBodyShots wrote:

It honestly probably doesn't matter with your profile, so I'd just roll with whatever you feel most comfortable with.  Any point difference if there is even one would be a few points at most, definitely nothing to worry about.


Ok, ty!  Robot Happy

BK7 Discharged 12/16


EQ8/9: 696/730 | TU8: 738 | EX8: 733
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