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90% Utilization vs Over the Limit

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New Visitor

90% Utilization vs Over the Limit

Hello!! I have been scanning around trying to find if there’s an impact on my score for being over the limit or if it’s the same negative as a 90% utilization ding. Essentially needing a bump in my score and wondering if it’s worth paying BOA down $500 to get under the limit (can’t afford to get it under 90 yet). All low 20s APR. Just paid the rest down and should all stay under 90% when cycle ends. Thank you.
Balance/Limit - Pmt:
BOA1: $7276/$7000 - $211/mo
BOA2: $1873/$2200 - $25/mo (0% Interest)
USAA: $5177/$6000 - $150/mo
Chase: $1758/$2000 - $60/mo
Message 1 of 15
14 REPLIES 14
Super Contributor

Re: 90% Utilization vs Over the Limit

The official wisdom here is the 89.01% has the same scoring impact as 102%.  But I don't think it has been rigorously tested by several different people with stable profiles -- the way that 8.99% has been (say).

 

Why do you need a score boost?

 

PS.  Your cards are at substantial risk of being balance chased.

Message 2 of 15
Valued Contributor

Re: 90% Utilization vs Over the Limit


@CreditGuyInDixie wrote:

The official wisdom here is the 89.01% has the same scoring impact as 102%.  But I don't think it has been rigorously tested by several different people with stable profiles -- the way that 8.99% has been (say).

 

Why do you need a score boost?

 

PS.  Your cards are at substantial risk of being balance chased.


From what I have found in my research, is that credit card companies do not like seeing a cards utilization greater than 70% for extended periods to time. CGID is correct, you are at substantial risk of being balance chased. I would be more worried about getting your utilization down than looking for a FICO score boost.


















Your FICO credit scores are not just numbers, it’s a skill.

Message 3 of 15
New Visitor

Re: 90% Utilization vs Over the Limit

CreditGuy thank you for responding.
I will be applying for an apartment in the next month or so and Credit Karma has me at 594. BOA shows 630 but I think they’re including an authorized user card and CK is not. I’m hoping paying the others to under 90 will help but cannot get the BOA1.

Do you know how the balance chase goes? Will they reduce limit to my exact balance or wait til I hit an even number, like $5000 on USAA? Have been maxed for a while. BOA has been over for a few months.
Message 4 of 15
Valued Contributor

Re: 90% Utilization vs Over the Limit

When a CCC starts to balance chase you, they make your available credit that same as the amount you owe. Some CCCs continue to report your CL as what your maximum CL started at. Others will report your CL as what the current available credit is which kills your overall utilization.


















Your FICO credit scores are not just numbers, it’s a skill.

Message 5 of 15
New Visitor

Re: 90% Utilization vs Over the Limit

Shoot. Thanks Medic. Fearful they will chase and this will be useless in the short term. Guess I’ll find out here soon. Very much appreciate the info. Have a great thanksgiving!
Message 6 of 15
Super Contributor

Re: 90% Utilization vs Over the Limit



I will be applying for an apartment in the next month or so and Credit Karma has me at 594.

Pay your CK scores no mind.  Check out creditscorecard or creditscore.com for your EX FICO 8 score, as that's a meaningful flavor.  Also know that taking your utilization down to an ideal place from where you're at currently would probably add around 70-80 points to whatever that EX FICO 8 score is when you get it.  That should be pretty good motivation Smiley Wink

Message 7 of 15
New Visitor

Re: 90% Utilization vs Over the Limit

Holy smokes Brutal, thanks man! FICO on creditscorecard is 653 vs 594 VantageScore(?) on CK. That’s super encouraging. Hopefully will get a few points with these paydowns and get that BOA card under 90 soon for a nice jump with a Xmas bonus or tax return.
One thing I read though is VantageScore targeted apartments/rentals. Hope that’s not the case here.
Either way, very very helpful and useful. Cheers to you man, have a great thanksgiving!
Message 8 of 15
Community Leader
Senior Contributor

Re: 90% Utilization vs Over the Limit

Your should aim for 87%. The maxed threshold is actually 88.9%. That's because 89.000001% rounds up to 90% and is no longer "under 90%." Paying to 87% ensures that the next month's interest will keep you at 88.9% or below.

 

The same thing would apply to the other thresholds (68.9%, 48.9%, 28.9%, 8.9%). Aim for 67%, 47%, 27%, and 7%. If you're not paying interest, 88.9%, 68.9%, 48.9%, 28.9%, or 8.9% will work.

Message 9 of 15
Valued Contributor

Re: 90% Utilization vs Over the Limit

Welcome Jeff. All great answers to your question, which leads me to this. Not only as you get through this hurdle, but down the road I hope that you keep close to these forums with a goal of getting things rolling in the right direction. Your scores are not terrible compared to where they could be. But what I would hate to see happen is that these lenders balance chase or even worse and close the cards, leading to possible collections and so on. You want to prevent this from snowballing the wrong direction.

My main point is everyone in these forums would be glad to answer questions and assist if possible. A lot of things you may want to know could possibly be found already by searching through the threads. Best of luck to you!
                               

Total Credit: $240,100Credit Utilization: 1%AAoA: 5 years, 7 monthsInstallments: Car Lease, Marcus LoanNegatives: 0

LOWES-35k | BOA-32.5k | AMEX-30k | DISC-27.1k | ALLIANT-25k | NFCU-25k | BARC-15k | BBUY-12k | CHASE-10k | WAL-10k | CITI-9.7k | PENFED-9.7k


Message 10 of 15
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