Credit Utilization

[smallfry]

Currently I have as close to zero utilization on all my revolving credit but the overall available is low at 15K. Is this hurting my scores and should I attempt to slowly increase my number of credit cards? I have just one now 5K limit. Is using 5% of an available 100K better than 5% of 15K? Does higher available credit result in a higher FICO score providing the utilization is low?

[Tuscani]

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smallfry wrote:
Currently I have as close to zero utilization on all my revolving credit but the overall available is low at 15K. Is this hurting my scores and should I attempt to slowly increase my number of credit cards? I have just one now 5K limit. Is using 5% of an available 100K better than 5% of 15K? Does higher available credit result in a higher FICO score providing the utilization is low?

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1-9% overall is ideal

[smallfry]

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@Tuscani wrote:

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@smallfry wrote:
Currently I have as close to zero utilization on all my revolving credit but the overall available is low at 15K. Is this hurting my scores and should I attempt to slowly increase my number of credit cards? I have just one now 5K limit. Is using 5% of an available 100K better than 5% of 15K? Does higher available credit result in a higher FICO score providing the utilization is low?

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1-9% overall is ideal

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You've said that before thanks. However that wasn't actually the question. Does the amount of available credit help to increase my FICO scores? Assume I would leavea 1% balance on 15K and on 100K. I am getting dinged now because I opened new lines of credit so I can only assume trying to acquire more credit cards at this point would be hurtful to my score.

[Tuscani]

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@smallfry wrote:

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@Tuscani wrote:

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@smallfry wrote:
Currently I have as close to zero utilization on all my revolving credit but the overall available is low at 15K. Is this hurting my scores and should I attempt to slowly increase my number of credit cards? I have just one now 5K limit. Is using 5% of an available 100K better than 5% of 15K? Does higher available credit result in a higher FICO score providing the utilization is low?

---

1-9% overall is ideal

---

You've said that before thanks. However that wasn't actually the question. Does the amount of available credit help to increase my FICO scores? Assume I would leavea 1% balance on 15K and on 100K. I am getting dinged now because I opened new lines of credit so I can only assume trying to acquire more credit cards at this point would be hurtful to my score.

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The newly opened accounts will hurt your score. Not the fact you have more avail credit.

[Anonymous]

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@smallfry wrote:
ideal

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You've said that before thanks. However that wasn't actually the question. Does the amount of available credit help to increase my FICO scores? Assume I would leavea 1% balance on 15K and on 100K. I am getting dinged now because I opened new lines of credit so I can only assume trying to acquire more credit cards at this point would be hurtful to my score.

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Focus on the cards you have now. My strategy in acquiring new cards is to wait three months or so between cards...this way I not ruffle the FICO "beast" and make it think I'm going for broke by getting a zillion lines of credit all at once. The ding to your FICO will ease over the next year or so once the FICO algorithm "realizes" you're not about to go charge up all those cards and go broke. You do want to get CLIs. Keep everything current with utilization below 10%, and every six to nine months bug the card companies for CLIs.

[smallfry]

Thanks everyone. Here's the problem. I only have one credit card with a 5K limit. the rest of my credit consists of lines of credit at an electronic store for 4K and a line of credit at a mattress store for 3K. Not buying another bed anytime and I am not buying another large screen TV. see the dilemna?

[Tuscani]

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smallfry wrote:
Thanks everyone. Here's the problem. I only have one credit card with a 5K limit. the rest of my credit consists of lines of credit at an electronic store for 4K and a line of credit at a mattress store for 3K. Not buying another bed anytime and I am not buying another large screen TV. see the dilemna?

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No dilemma. You don't have to use these accounts, and they are not costing you money, so leave them be.

[smallfry]

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@Tuscani wrote:

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@smallfry wrote:
Thanks everyone. Here's the problem. I only have one credit card with a 5K limit. the rest of my credit consists of lines of credit at an electronic store for 4K and a line of credit at a mattress store for 3K. Not buying another bed anytime and I am not buying another large screen TV. see the dilemna?

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No dilemma. You don't have to use these accounts, and they are not costing you money, so leave them be.

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Thanks again Tuscani. Maybe I need not do anything right now.

[Anonymous]

Is it to late for me?

My balances are $0, and I'm going for loan shoping at the begining of June.

I charged to cards with lunch and other with gas.

Any chance that will reflect and if not should I call and ask them to update?

Thank you!

[Anonymous]

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@smallfry wrote:
Thanks everyone. Here's the problem. I only have one credit card with a 5K limit. the rest of my credit consists of lines of credit at an electronic store for 4K and a line of credit at a mattress store for 3K. Not buying another bed anytime and I am not buying another large screen TV. see the dilemna?

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How about in a couple months you buy a universal remote and a bedding set? Then pay them off over a month or two? This keeps the accounts active without racking up a huge balance and dinging you on utilization.