Dropping below 50% aggregate utilization did not result in a FICO score increase

[MrsCHX]

I don't pay for MyFICO at the moment. I'm currently waiting for a bunch of balances to report in August (I hope they report timely because multiple accounts were paid to $0!)

I logged in today and happened to notice that FICO reports my aggregate utilization as 49% now, and while I mysteriously lost 6 points last week (I can't figure it out as I've been paying balances down consistently all year), dropping below 49% did not result in a change at all.

I know that part is that there are still cards individually reporting high utilization; however, I've always read that aggregate util matters more than individual (and yes, I know that # of cards with a balance matters too). It'll be several weeks before the new statement date for all of the paid off cards, so I'll have to check back at that time to see the impact.

[Vinjints]

I've also wondered if rounding is taken into account before points are given/taken. Is that 48.9% or 49.2% utilization? I don't know if it matters.

[MrsCHX]

Same!

But next month I'll have a card that was at 91% post 0% and one at 82% post 0%. Plus some other smaller balances as a result of normal spending. Now that the big 2 are paid off, I'm going to try to go AZEO and see how that reflects.

[FicoMike0]

You should see something from dropping below 49%. Did something else change? Was the 91% card at 88% before?

[MrsCHX]

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@FicoMike0 wrote:

You should see something from dropping below 49%. Did something else change? Was the 91% card at 88% before?

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No, the 91% card has been at that high util for a while. 

As I think through what has changed, I closed CreditOne, reducing available credit. Could that be it??

[FicoMike0]

If that kept you above 49%, that would explain it.

You should see improvement as you bring down those maxed out accounts. Remember, they'll score the highest individual account, as well as aggregate.

Good luck!

[FlaDude]

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@MrsCHX wrote:

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As I think through what has changed, I closed CreditOne, reducing available credit. Could that be it??

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AFAIK, absolute CL is not a score factor so the effect of closing cards is down to how it affects utilization.

After paying down, do you still have any maxed out cards (>89%)? If not, that should provide a boost when those report. Hopefully you'll see good results soon.

[Thomas_Thumb]

When you pay those 2 cards to $0 what will be your highest utilization on cards still posting a balance? Also, what will be your resultant aggregate utilization?

Do you have any AMEX charge cards, closed loop store cards, credit union cards or PLOCs?

Closed loop = not cobranded and limited to use at store only.

[MrsCHX]

When those last two are paid, I'll have $390/1500 at Home Depot (0% offer) so 25% util and 60% on Savor (0% til November) reporting.

No PLOC, no AMEX charge cards. 

I have two PenFed cards and store cards (Target, Home Depot, Amazon, Kohls, LOFT).

[SouthJamaica]

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@MrsCHX wrote:

I don't pay for MyFICO at the moment. I'm currently waiting for a bunch of balances to report in August (I hope they report timely because multiple accounts were paid to $0!)

I logged in today and happened to notice that FICO reports my aggregate utilization as 49% now, and while I mysteriously lost 6 points last week (I can't figure it out as I've been paying balances down consistently all year), dropping below 49% did not result in a change at all.

I know that part is that there are still cards individually reporting high utilization; however, I've always read that aggregate util matters more than individual (and yes, I know that # of cards with a balance matters too). It'll be several weeks before the new statement date for all of the paid off cards, so I'll have to check back at that time to see the impact.

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In my opinion there are no magic thresholds in aggregate revolving utilization.