Anything magic about util % under 50%??

[Anonymous]

This is interesting - it's from Credit Q&A under the Education tab up top of this webpage.

"There's no ideal utilization to shoot for, because as with most things, it depends on everything else on your report. But as a general rule, you want to try to keep your utilization on any one card, and across all of your credit cards, below 50% to avoid the risk of hurting your FICO® score."

[MBOhio2]

Thanks beammeup - I KNEW I had read that the 50% was an actual FICO guideline somewhere!!

So here's a random tidbit though - on my EQ Score Simulator, it says that having an overall util % of 49% will actually give me a lower score range than a overal util % of 54% (computed ths by paying down different $ amounts over 1 month). This makes no sense! Now I'm scared to pay the extra money to get me below 50% but I have to think that the Simulator is just off somehow.

[MBOhio2]

Well here's the update... unfortunately, even though the Score Simulator on EQ and TU said my score would go up about 20-30 points, paying my utilization down from 54% to 48% actually gave me NO score increase I am very, very bummed.

[MarineVietVet]

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@MBOhio2 wrote:

Well here's the update... unfortunately, even though the Score Simulator on EQ and TU said my score would go up about 20-30 points, paying my utilization down from 54% to 48% actually gave me NO score increase I am very, very bummed.

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I'm sorry to hear your score didn't go up but you now have less debt and IMO that always trumps a score.

(A glass half full approach)

From a BK years ago to:
EX - 3/11 pulled by lender- 835, EQ - 2/11-816, TU - 2/11-782

"Some people spend an entire lifetime wondering if they've made a difference. The Marines don't have that problem".

[MBOhio2]

Yes, less debt is great, but I needed a 640 by 06/10 to qualify for a mortgage to build our house. I'm just frustrated because the debt is easy to pay off and the entire LOC will be paid off by the end of the year, but continuing to put off the house is a bummer for my family.

I appreciate the optimism though!!

[llecs]

Bummer. I'd focus more attention to whatever baddies are reporting.

[MBOhio2]

My only baddies are SL charge-offs from about 18 months ago. I'm n a repayment agreement on those and I pay monthly, but that will simply take time. I've tried everything with them - reverse of charge-off, PFD, etc. They are super inflexible so my only alternative is monthly payments now.

[Anonymous]

I would try to get your credit card limits increased and see where that puts you. Higher limits will decrease you utl..

[Anonymous]

Also get your spouse to add you as an authorized user. as long as their cards are below 10% that would also help.

[Anonymous]

Even parent or siblings could add you as a AU. This would increases you open credit which would bring down UTL. Other than that you need to focus on get the LOC paid down or increased.