@Anonymous wrote:Hi Kidcat. Yes, having a credit card at 88% will have a significant impact. But remember that you aren't doing any permanent harm to your score. It's just that, as long as that card is at 88% (or close to that) you will be losing a fair number of points. But as that card's utilization comes down -- 80&, 70%, 60%, etc. -- you will get those points back.
I had a longer discussion with another person just a day or two ago. What I said to him may help:
http://ficoforums.myfico.com/t5/Understanding-FICO-Scoring/Utilization-question/m-p/4336555#M101580
Here's my philosophy about it. One should try to have one's FICO scores maximized at all times, whether or not there's some big, obvious credit "event" like a mortgage or auto loan on the horizon.
1. Credit score searches are ubiquitous now, often when you don't expect it: e.g., changing cellphone carriers, acting as a guarantor on your child's rental application, getting car insurance, changing credit card processors at your business, etc.
2. Having better credit scores gets you better credlit limit increases, better prequalified offers, better credit terms in general; it even gets you lower car insurance rates.
3. In an emergency, when you might really need credit, that's exactly when you're helpless to do anything about optimizing, because you don't have the flexibility.
So I think it's a worthy goal to optimize one's credit picture, with or without any specific foreseeable need for it at the moment.
@taxi818, I will interested in your data points. Thanks for starting this thread.
@taxi818 wrote:
@CreditDunce wrote:
@SouthJamaica wrote:Here's my philosophy about it. One should try to have one's FICO scores maximized at all times, whether or not there's some big, obvious credit "event" like a mortgage or auto loan on the horizon.
1. Credit score searches are ubiquitous now, often when you don't expect it: e.g., changing cellphone carriers, acting as a guarantor on your child's rental application, getting car insurance, changing credit card processors at your business, etc.
2. Having better credit scores gets you better credlit limit increases, better prequalified offers, better credit terms in general; it even gets you lower car insurance rates.
3. In an emergency, when you might really need credit, that's exactly when you're helpless to do anything about optimizing, because you don't have the flexibility.
So I think it's a worthy goal to optimize one's credit picture, with or without any specific foreseeable need for it at the moment.
Not sure I quite agree with this. The OP has a 700+ credit score. That is good enough since he isn't planning on app'g for anything right now. IMO he should pay 3x the min for the 0% balances. And put as much as he can towards the higher interest rate balances. Once the higher interest rate balances are taken care of, then attack the lower interest rates. His score may not improve as fast as it could, but he will pay off the balances faster. Now matter how he gets there, his score will be maximized once the balances are paid off. The less interest he pays the faster he will get there.
We don't know enough about the auto insurance credit score model to know how to maximize it. It does not behave the same as a FICO credit score. Remember, the score isn't about your risk of default. For example, just having store cards hurts your auto insurance risk score. Even closed store cards isn't good for your auto insurance score. I have started following my TU insurance score on CK, but I don't have enough data points to know if higher balances really hurt your auto insurance risk score. Moreover, it isn't my LexisNexus auto insurance score. Apparently, I would have to pay to get that score.
You also do not need a 760+ score for cell phone contracts, most apartment rentals or employment screening. Perhaps, you will get better pre-approval offers, but the OP shouldn't be concentrating on paying down the balances, not getting more credit now. Just let his current TL's age. His overall utilization is not bad.
For sure don't need 760 plus. Yep despite all the balances scores still over 700 as I have no negatives at all. No lates nothing. 650 will get cellphone. Apartments and employment. Do want to maximize scores but not at the expense of my savings. I will pay 3x on 0% actually I've been doing 10 times that's why I have not paid the small fry off. The biggest current at exactly 60%. It was 73%. So I think once that one card is under 50% scores should rebound. I agree also will let accounts age at this point. If can can pay 4K down in next 5 months I will be dancing in the streets which will put my total util under 10%. Hopefully under 7 cards with balances then. Thanks all for different view points and I've listened to everyone. So good advice.
I said it's a worthy goal, not the only worthy goal.
