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Account utilization % in regards to score improvement

LazarusLong
Contributor

Account utilization % in regards to score improvement

We have a revolving LOC that is currently very high utilization (over 90%).  We know that optimally we need to get it down to at least 28% for the best score improvment, but will we see improvement at other levels as well (for example, 75, 60, 50, etc.)?

 

We do have the $$$ to pay it down significantly but its dipping pretty deeply into our savings so trying to figure out the best options for ourselves (and the account) with what we can pay at this time.

 

Thanks.

AAoA = 6.8 yrs
AoOA = 22.6 yrs
Message 1 of 10
9 REPLIES 9
gdale6
Moderator

Re: Account utilization % in regards to score improvement


@LazarusLong wrote:

We have a revolving LOC that is currently very high utilization (over 90%).  We know that optimally we need to get it down to at least 28% for the best score improvment, but will we see improvement at other levels as well (for example, 75, 60, 50, etc.)?

 

We do have the $$$ to pay it down significantly but its dipping pretty deeply into our savings so trying to figure out the best options for ourselves (and the account) with what we can pay at this time.

 

Thanks.


Accounts at greater than 89% are considered maxed out and there is an additional Fico score hit for it. Yes there are other tiers besides the 28.9%. I dont remember the exact points, I am also going to move this to the UFS forum.

Message 2 of 10
thornback
Senior Contributor

Re: Account utilization % in regards to score improvement

88.9%, 68.9%, 48.9%, 28.9%, and 8.9% 

Personal Aphorism:
"Forget What You Feel, Remember What You Deserve"


Starting FICO 8s | 09/2017: EX 641 ✦ EQ 634 ✦ TU 647
Current FICO 8s | 11/2020: EX 780 ✦ EQ 771 ✦ TU 781
Current FICO 9s | 11/2020: EX 793 ✦ EQ 780 ✦ TU 778
2020 Goal Score | 800s


My AAoA: 3.8 years not incl. AU / 4 years incl. AU
My AoOA: 7.10 years not incl. AU / 9.10 years incl. AU
Inquiries: EX 0/6 | 1/12 ✦ EQ 1/6 | 2/12 ✦ TU 0/6 | 1/12
Report Status: Clean


Without patience, we will learn less in life. We will see less. We will feel less. We will hear less. Ironically, rush and more usually mean less.
Message 3 of 10
BrutalBodyShots
Super Contributor

Re: Account utilization % in regards to score improvement

Is there a specific [model] Fico score that you're trying to optimize?

Message 4 of 10
LazarusLong
Contributor

Re: Account utilization % in regards to score improvement


@BrutalBodyShots wrote:

Is there a specific [model] Fico score that you're trying to optimize?


General score improvement for installment loan purposes (refinance an RV that is at 18% Ugh!).  Also a car purchase in a few months (replacing existing vehicle which is also at 11%).

 

Thanks.

AAoA = 6.8 yrs
AoOA = 22.6 yrs
Message 5 of 10
SouthJamaica
Super Contributor

Re: Account utilization % in regards to score improvement


@LazarusLong wrote:

We have a revolving LOC that is currently very high utilization (over 90%).  We know that optimally we need to get it down to at least 28% for the best score improvment, but will we see improvement at other levels as well (for example, 75, 60, 50, etc.)?

 

We do have the $$$ to pay it down significantly but its dipping pretty deeply into our savings so trying to figure out the best options for ourselves (and the account) with what we can pay at this time.

 

Thanks.


IMHO getting the account down to 48 or 49% will trigger a gain of some points.

Message 6 of 10
LazarusLong
Contributor

Re: Account utilization % in regards to score improvement


@SouthJamaica wrote:

@LazarusLong wrote:

We have a revolving LOC that is currently very high utilization (over 90%).  We know that optimally we need to get it down to at least 28% for the best score improvment, but will we see improvement at other levels as well (for example, 75, 60, 50, etc.)?

 

We do have the $$$ to pay it down significantly but its dipping pretty deeply into our savings so trying to figure out the best options for ourselves (and the account) with what we can pay at this time.

 

Thanks.


IMHO getting the account down to 48 or 49% will trigger a gain of some points.


Well I just took the account down to 0% so we'll see what happens when it reports lol.  I still have a single account at 100% (due to a 0% special) but total utilization will be around 12%.

AAoA = 6.8 yrs
AoOA = 22.6 yrs
Message 7 of 10
SouthJamaica
Super Contributor

Re: Account utilization % in regards to score improvement


@LazarusLong wrote:

@SouthJamaica wrote:

@LazarusLong wrote:

We have a revolving LOC that is currently very high utilization (over 90%).  We know that optimally we need to get it down to at least 28% for the best score improvment, but will we see improvement at other levels as well (for example, 75, 60, 50, etc.)?

 

We do have the $$$ to pay it down significantly but its dipping pretty deeply into our savings so trying to figure out the best options for ourselves (and the account) with what we can pay at this time.

 

Thanks.


IMHO getting the account down to 48 or 49% will trigger a gain of some points.


Well I just took the account down to 0% so we'll see what happens when it reports lol.  I still have a single account at 100% (due to a 0% special) but total utilization will be around 12%.


Well I've never had a 100% maxed out account so I can't even imagine what kind of a monkey wrench that throws into things. I wouldn't have the nerve to provoke my lender to that degree.

 

 

Message 8 of 10
LazarusLong
Contributor

Re: Account utilization % in regards to score improvement


@SouthJamaica wrote:

@LazarusLong wrote:

@SouthJamaica wrote:

@LazarusLong wrote:

We have a revolving LOC that is currently very high utilization (over 90%).  We know that optimally we need to get it down to at least 28% for the best score improvment, but will we see improvement at other levels as well (for example, 75, 60, 50, etc.)?

 

We do have the $$$ to pay it down significantly but its dipping pretty deeply into our savings so trying to figure out the best options for ourselves (and the account) with what we can pay at this time.

 

Thanks.


IMHO getting the account down to 48 or 49% will trigger a gain of some points.


Well I just took the account down to 0% so we'll see what happens when it reports lol.  I still have a single account at 100% (due to a 0% special) but total utilization will be around 12%.


Well I've never had a 100% maxed out account so I can't even imagine what kind of a monkey wrench that throws into things. I wouldn't have the nerve to provoke my lender to that degree.

 

 


It will start to drop next month. Best Buy offered me a $2000 credit line and the TV we purchased was a bit more than that lol. But we have 0% interest on the purchase for 2 years so I'm willing to take the score hit on it. 

AAoA = 6.8 yrs
AoOA = 22.6 yrs
Message 9 of 10
Thomas_Thumb
Senior Contributor

Re: Account utilization % in regards to score improvement

Still best to get the 0% interest card below max out territory ASAP with your 1st payment (below 89%). Then make twice the minimum payment each month thereafter.

Fico 9: .......EQ 850 TU 850 EX 850
Fico 8: .......EQ 850 TU 850 EX 850
Fico 4 .....:. EQ 809 TU 823 EX 830 EX Fico 98: 842
Fico 8 BC:. EQ 892 TU 900 EX 900
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VS 3.0:...... EQ 835 TU 835 EX 835
CBIS: ........EQ LN Auto 940 EQ LN Home 870 TU Auto 902 TU Home 950
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