Fico thresholds 2023

[SouthJamaica]

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@Superduper2014 wrote:

I see what you mean. 

Well.. I will be reducing my revolving util regardless of the thresholds that are circulating around. So hope my plan works out. 

Thanks

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Now you're talking

[Thomas_Thumb]

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@Superduper2014 wrote:

Thank you guys.. 

I will be experimenting. 

I have overall credit util of 7%,

I currently have 3 cards under 29%,

1 at 9%

1 at 3%. 

I am able to pay down to zero the 9% and 3% and bring one of the 29% down to 9%. 

At that point i'd have: 

2 at 29% 

1 at 9%

My fico 9s are:

Experian 783 

Equifax 818

Transunion 792

Not sure why there are discrepancies here on the ficos, but they have they same exact info. 

In any case. 

This means from wha has been said here that 

1)  29% owing on one card and 8.9% owing in the aggregate, FICO would treat it more harshly than someone who owes, for example, $500. 

In this case I would still not be in such great shape if I still have 2 cards at 29%, even if I pay the other smaller ones. 

2) Fico penalizes for too many cards reporting balances and for no recent revolving activity.

In this case it would benefit me to pay off 2 cards completely as I would not be penalized for too many cards with balances. 

I am trying to allocate my resources correctly for maximum score upgrade in the next 2 weeks. (totally possible due to my reporting dates on these cards)

Any suggestions appreciated!!!!  thank you thank you

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Definately pay those two cards to zero to reduce # reporting balances. Fico does indeed look at highest utilization on individual cards. So, if you have 3 cards above 29%, get them all below 29% (or 28% for a margin of safety). Do not leave any at 29% or higher.

Aggregate utilization will fall out wherever based on total paydowns. Given you are already down to 7% AG UT, not many points to be gained. Nonetheless some report an AG threshold at 5% or 6%. So, paydown cards enough get AG below 5%.

Ultimately, I don't believe further increases in your score will impact card approval odds. Fewer accounts with balances may help irrespective of impact on score.

[Superduper2014]

@Thomas_Thumb 

Thank you for your reply. 

Maybe I am allocating my resources wrong if fewer accounts with balances may help irrespective of score for increasing approval odds. 

Considering that my aggregate util is already low at 7% and none of my cards are above 29%,

then paying one of the 29% down to 9% may not have any impact on scores for the "purpose of getting approved for new credit"

Maybe, only paying off the 2 cards with balances will do the trick. 

My aggregate will still go down and I will have less cards with balances. Scores and odds will still go up. Thoughts?

[SouthJamaica]

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@Superduper2014 wrote:

@Thomas_Thumb 

Thank you for your reply. 

Maybe I am allocating my resources wrong if fewer accounts with balances may help irrespective of score for increasing approval odds. 

Considering that my aggregate util is already low at 7% and none of my cards are above 29%,

then paying one of the 29% down to 9% may not have any impact on scores for the "purpose of getting approved for new credit"

Maybe, only paying off the 2 cards with balances will do the trick. 

My aggregate will still go down and I will have less cards with balances. Scores and odds will still go up. Thoughts?

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There is a penalty for having all revolving accounts reporting zero balance.

[Thomas_Thumb]

Based on what the OP said in a prior post, paying off 2 cards will still leave 3 cards with balances.

OP - whatever your payment scheme, pay enough on cards to get aggregate under 5%.