A Challenge to myFICO members -- Individual utilization versus overall utilization there

[CH-7-Mission-Accomplished]

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@Anonymous wrote:

I had to use my chase card for some unexpected dental work in November.  My CL is $10k.  My dental work was $5,700.  I am in my 0% apr promo period so I took advantage of it.  (57% utilization on one card and had 12% overall via 2 cards with a balance)  The most I lost was 5 pts with Equifax, the others only dropped a couple points.  At this same time, I applied for Amex and was approved so the minimal point change most likely has been to a new account affecting my AAoA.  There is also a possibility any minimal point change I had for the Chase transaction was offset with a drop in my utilization due to the $10k amex CL that reported.  

Bottom line, I had other things going on but didn't see any big impacts to my scores by charging a large transaction.

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I had the same experience when I transferred 5K from my 30K limit Cap 1 card to my new 0% interest till August DCU card that only has a 7.5K limit.

So I went from one card reporting 16.6% (5K/30K) to having one card report 66.6% (5K/7.5K).  No difference.

This is why I wanted to experiment with others and see if it holds true.

I think people trying to move things around so they have two cards reporting 20% instead of one card reporting 40% may not be necessary.  Any benefit may be marginal and it may be worse if you only have two cards so now 100% of your cards is reporting a balance.

Also the experts on the other site opine that the 30% has always been a myth caused by people confusing the fact that FICO scores 30% of its weight based on utilization, not 30% on overall utilization.  Their pros say 30% is worse than 20% but better than 40%, but it's pretty much one for one up to 50%, and the slope only gradually increases up till 90%.  But again, this is overall utilization.

[baller4life]

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@CH-7-Mission-Accomplished wrote:

There are detailed graphs on the other credit site created by their guru.  The graph shows a one for tradeoff on the slope up until about 50% utilization at which point the slope steepens and then sharply jumps at 90%.  This is based on overall utilization, though.

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YES! Their guru has done extensive research on the effects on utilization on Fico scores. I have learned two very important points:

1) Fico scores greater than 700, less than 2.5% total util is optimum. 10% will get you rebucketed.

2) Fico dings you at 30%,50% and 80% and 90% for individual utilization. So try to keep individual card under 30% util. 

[Anonymous]

1% UTL at all times.

50% UTL on One Card just reported. Still 1% overall, score dropped 1 pt EQ, 0pt TU, 3pt EX.  $496 owed on $1k limit reported 

[Anonymous]

My newegg is rocking a 550 balance, still reporting over 600 on a 800 limit. My scores haven't changed in 2 months, despite store cards giving me cli, and the same util on my bank cards, 19% combined. Usually when I keep my balance nearly the same or get an update with some accounts behind, I will get a 5 >pt increase because they are aging and I went on a spree last year

[manyquestions]

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@CH-7-Mission-Accomplished wrote:

There are detailed graphs on the other credit site created by their guru.  The graph shows a one for tradeoff on the slope up until about 50% utilization at which point the slope steepens and then sharply jumps at 90%.  This is based on overall utilization, though.

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Are those charts using FICO 04 or FICO 08?  I ask because FICO 04 is much harsher on my scores when it comes to utilization as far as number of cards that report a balance.  That "only one card reporting a balance" is optimum for my reports under FICO 04, whereas I get no score change with up to 5 cards reporting a balance under FICO 08.  You will want to be sure to keep track of which versions of FICO score are being used for data.

[EW800]

Interesting topic.  One thing in regard to Util that I have been SO tempted to try, is in regard to a very old B of A CC that I have that has a lowly $700 CL.  My total CL across all cards is $150K.  I only let about $5 or so report on one account, so my overall Util is pretty much nothing.  I have been tempted to let $400 or so report on the B of A card, just to see what this one almost 60% Util on one account would do.  It seems like it would be crazy for $400 out of $150K to have any adverse impact on me, however based on the percentage of one account that we seem to believe is the case, it seems that it would have a negative impact on my score.  I am so curious as to how much it would impact my score.  

[NRB525]

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@EW800 wrote:

Interesting topic.  One thing in regard to Util that I have been SO tempted to try, is in regard to a very old B of A CC that I have that has a lowly $700 CL.  My total CL across all cards is $150K.  I only let about $5 or so report on one account, so my overall Util is pretty much nothing.  I have been tempted to let $400 or so report on the B of A card, just to see what this one almost 60% Util on one account would do.  It seems like it would be crazy for $400 out of $150K to have any adverse impact on me, however based on the percentage of one account that we seem to believe is the case, it seems that it would have a negative impact on my score.  I am so curious as to how much it would impact my score.  

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There one way to find out. And I'll wager it's not many points at all.

[Thomas_Thumb]

@manyquestions wrote:

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@CH-7-Mission-Accomplished wrote:

There are detailed graphs on the other credit site created by their guru.  The graph shows a one for tradeoff on the slope up until about 50% utilization at which point the slope steepens and then sharply jumps at 90%.  This is based on overall utilization, though.

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Are those charts using FICO 04 or FICO 08?  I ask because FICO 04 is much harsher on my scores when it comes to utilization as far as number of cards that report a balance.  That "only one card reporting a balance" is optimum for my reports under FICO 04, whereas I get no score change with up to 5 cards reporting a balance under FICO 08.  You will want to be sure to keep track of which versions of FICO score are being used for data.

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+1

I see the same. A large ding, particularly with EQ, when going from 3 of 6 to 6 of 6 cards reporting on Fico 04 classic and enhanced - 40 to 50 point drop (AG UT still below 4%). Some change on EQ Fico 08 backcard enhanced (around 10 points).

[BallBounces]

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@EW800 wrote:

Interesting topic.  One thing in regard to Util that I have been SO tempted to try, is in regard to a very old B of A CC that I have that has a lowly $700 CL.  My total CL across all cards is $150K.  I only let about $5 or so report on one account, so my overall Util is pretty much nothing.  I have been tempted to let $400 or so report on the B of A card, just to see what this one almost 60% Util on one account would do.  It seems like it would be crazy for $400 out of $150K to have any adverse impact on me, however based on the percentage of one account that we seem to believe is the case, it seems that it would have a negative impact on my score.  I am so curious as to how much it would impact my score.  

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I would love to see you do this test, except letting 90%+ report on that 700 card.   Then back it to 80, 50, 30, 10

[masscredit]

I'm wrapping up a test to see what happens when I let multiple cards report. EQ04 took the biggest hit with 7 of 8 cards reporting. TU08 was strange. It lost 3 points then went up 11 when the most cards were reporting.  That score went back to where it was when I started when I went back to just one card reporting. Actually, it went back to that number with two cards reporting. One at $4395/$10500 and the other was $360/$4400.  Now the only card reporting is $795/$10500.  EQ08 gained 2 points.  My EQ04 only reports once per month (DCU). I can't use that for a gauge to finish my test because the last baddie fell off that report so it will probably gain more points when it reports next week.

Thie test mentioned is simple and should provide interesting results. Of course we'd have to sprinkle in some YMMV. There are times when I think a certain action will provide a definate result and then it goes in the opposite direction like my TU08 score did.