FYI. All cards reported at 0. Lost 11 points.

[Anonymous]

 Utilization doesn't have a memory as they say so I'm not concerned. I'm not going for any major loan right now or credit cards. I can put something on one card under 9% of the limit and get those points back and even more possibly next month. But to those that are going for a personal loan, car loan, new card etc, do not pay down to zero if you want max points. That little bit of points lost could take you down to the next bracket and have you paying higher interest or denied for that new card you want.  All cards at 0 and one reporting at less than 9% is ideal like what others have said on here. I know I'm not saying anything new to the veterans on here but to the new ones I wanted to put this out there.

[Anonymous]

Yup, good post.  And, it's also worth noting that 11 points lost for this is on the light end, as many others have reported greater losses for this same exact thing.

[Sandman771]

Just to throw another curveball, I had UTI one one card below 9% and the other at 0. the next month one was still at 0 and the second one jumped up to about 13% UTI. I gained 11 points. I'm sure part of that was just the bump from an additional month of perfect payment, but still this FICO makes math harder than it should be. lol

[A1Credit]

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@Sandman771 wrote:

Just to throw another curveball, I had UTI one one card below 9% and the other at 0. the next month one was still at 0 and the second one jumped up to about 13% UTI. I gained 11 points. I'm sure part of that was just the bump from an additional month of perfect payment, but still this FICO makes math harder than it should be. lol

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Do you think it is beneficial to let a balance post a little more than the 9% or still keep one account under the 9% with the rest reflecting zero?  This is all a headache!  I am trying to maximize more scores for the next credit pull.  

[Sandman771]

Everyone here swears that one at 9% or less is best and I have to go with the crowd. i was just sharing my date paoint. it could have been multiple factors besides the increase in a balance. Just my observation. 

[A1Credit]

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@Sandman771 wrote:

Everyone here swears that one at 9% or less is best and I have to go with the crowd. i was just sharing my date paoint. it could have been multiple factors besides the increase in a balance. Just my observation. 

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Okay thanks!  I am going to be up poo's creek if my AMEX card decides to post to my CRAs on the first statement instead of the second but I am going to hedge my bets.

[Anonymous]

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@Sandman771 wrote:

Just to throw another curveball, I had UTI one one card below 9% and the other at 0. the next month one was still at 0 and the second one jumped up to about 13% UTI. I gained 11 points. I'm sure part of that was just the bump from an additional month of perfect payment, but still this FICO makes math harder than it should be. lol

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My take on this here and this answer is for A1Credit as well is that your utilization change from 9% to 13% had no positive impact on your score.  Arguably, it may have had a negative impact.  Clearly, though, another factor was at play here that caused your score increase which could be an infinite number of things such as negative items aging, crossing an AAoA threshold, crossing an AoYA threshold, inquiries aging, so on and so forth.

[Anonymous]

The "Less than 9%" rule has to do with total utilization.   There is no individual penalty as long as your card is < 29% (according to the veterans here.)

Here is an example of how that might work.  Suppose you had three cards, with limits of 5k, 3k, and 2k.  That's a total credit limit of 10k.

You need to make sure your total utilization is at < 9%.  That's < $899, right?

Then each individual card needs to be < 29%.  If you had the 5k and 3k card at $0, then the balance of the 2k limit card would need to be < $579.  (Less than 29%.)   But if you instead chose the 2k and 3k cards to be at $0, then your 5k card could be as high as $899.  (Since 899/5000 < 29%.)

Because all that is complicated to explain, people sometimes imply that the card that reports a balance needs to have an individual util of < 9%.  That's not exactly true, but it is not hurtful practical advice.

Even simpler is this:

All cards at Zero Except One (AZEO) with the remaining card showing something small (like $20).

That simple rule will work for every profile out there.  It also takes into account the possibility that some FICO models might like a slightly lower util better, or that some FICO models might partly look at your raw dollar value of debt (both unlikely but conceivable).

[A1Credit]

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@Anonymous wrote:

The "Less than 9%" rule has to do with total utilization.   There is no individual penalty as long as your card is < 29% (according to the veterans here.)

Here is an example of how that might work.  Suppose you had three cards, with limits of 5k, 3k, and 2k.  That's a total credit limit of 10k.

You need to make sure your total utilization is at < 9%.  That's < $899, right?

Then each individual card needs to be < 29%.  If you had the 5k and 3k card at $0, then the balance of the 2k limit card would need to be < $579.  (Less than 29%.)   But if you instead chose the 2k and 3k cards to be at $0, then your 5k card could be as high as $899.  (Since 899/5000 < 29%.)

Because all that is complicated to explain, people sometimes imply that the card that reports a balance needs to have an individual util of < 9%.  That's not exactly true, but it is not hurtful practical advice.

Even simpler is this:

All cards at Zero Except One (AZEO) with the remaining card showing something small (like $20).

That simple rule will work for every profile out there.  It also takes into account the possibility that some FICO models might like a slightly lower util better, or that some FICO models might partly look at your raw dollar value of debt (both unlikely but conceivable).

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@Anonymous for the breakdown @Anonymous

My plan is to allow my 3K CL to report as $0 while allowing my $500 CL to report as $121.  My AMEX has a 1K CL with a current balance of $500 but I do not expect that tradeline to hit my credit report until my second statement.  I will receive my first statement this month.

[Anonymous]

Your aggregate utilization then is in the single digits which maximizes scoring and your one card that's in the 20's as CGID explained will not adversely impact your score. When your Amex does report though with 50% utilization you will see a score drop because aggregate utilization will climb from single digits to double digits, even though percentage point wise it isn't a huge gain it will cross the threshold from best to second best. Also a few points could be lost from the new tradeline itself being at 50% util.