Hi, I'm wondering if anyone out there can explain something to me.. On these forums I've often read of people telling others to make sure that their UTL Ratio is always low, like within 10%.
However what happens if I purchase expensive items , and therefore have a UTL of say 80% - but only for one day, since I pay it off immediately. Would that temporary high usage affect my score negatively in any way ? I mean does the Fico scoring algorithm care at all about that ?
However what happens if I purchase expensive items , and therefore have a UTL of say 80% - but only for one day, since I pay it off immediately. Would that temporary high usage affect my score negatively in any way ? I mean does the Fico scoring algorithm care at all about that ?
@CreditDunce wrote:
If by some chance you let the 80% on one card report, it will hurt your credit score that month. But once you pay it off and the CC reports, your score will go right back to where it was.
No I don't mean if I carry the 80% balance on the day the lender reports.. I'm aware of that.
What I'm saying is using it at a high UTL on a non-reporting day, then quickly paying it off.. I'm wondering if that has any impact on the FICO Scoring model. The reason I had this thought is because I noticed that on my credit reports - they DO keep track of the highest balance I've ever had.. it's permanently recorded, for every single account.
@onepointatatime wrote:
@CreditDunce wrote:
If by some chance you let the 80% on one card report, it will hurt your credit score that month. But once you pay it off and the CC reports, your score will go right back to where it was.
No I don't mean if I carry the 80% balance on the day the lender reports.. I'm aware of that.
What I'm saying is using it at a high UTL on a non-reporting day, then quickly paying it off.. I'm wondering if that has any impact on the FICO Scoring model. The reason I had this thought is because I noticed that on my credit reports - they DO keep track of the highest balance I've ever had.. it's permanently recorded, for every single account.
High balance isn't used for FICO scoring except if the tradeline doesn't have a reported limit (which is incredibly rare at this point, used to be unfortunately common). Also, there are a few lenders (BOFA used to be notorious for this) who will do a mid-cycle report if they see a sudden spike in utilization. DCU will do it occasionally too in my experience.
Temporary blip if it does happen, and I put every single purchase on my credit cards regardless of size and have maxxed the majority of them temporarily (and let them report too), isn't a big deal to do it.
@Revelate wrote:
High balance isn't used for FICO scoring except if the tradeline doesn't have a reported limit (which is incredibly rare at this point, used to be unfortunately common). Also, there are a few lenders (BOFA used to be notorious for this) who will do a mid-cycle report if they see a sudden spike in utilization. DCU will do it occasionally too in my experience.
Temporary blip if it does happen, and I put every single purchase on my credit cards regardless of size and have maxxed the majority of them temporarily (and let them report too), isn't a big deal to do it.
Very complete answer... thank you!