@Anonymous wrote:I'm at 59% on my CFU. Cost me about 27 pts. No biggie, I'll get them all back immediately when I PIF in June.
in June!.......
finances over credit
@Anonymous wrote:I am having surgery soon. It's going to cost what's left of my deductible, about $3k. I have two credit cards, one is OpenSky secured ($200) that I only use for Netflix subscription, and a Discover with a 6k credit line. I only have a balance of $275 on that card, so my utilization is very low. (My Discover card is It with cash back and it's a new card, so I have 0% interest for the next year.) If I put the entire balance of my surgery on my card, that will put my utilization at approximately 50%. Will that be hugely detrimental to my score?
50% appears to be a significant threshold. In my profile going from 30+% or 40+% to 50% costs me around 10 points. So I would suggest making it 48% or 49%.
@Thomas_Thumb wrote:
@Anonymous wrote:I am having surgery soon. It's going to cost what's left of my deductible, about $3k. I have two credit cards, one is OpenSky secured ($200) that I only use for Netflix subscription, and a Discover with a 6k credit line. I only have a balance of $275 on that card, so my utilization is very low. (My Discover card is It with cash back and it's a new card, so I have 0% interest for the next year.) If I put the entire balance of my surgery on my card, that will put my utilization at approximately 50%. Will that be hugely detrimental to my score?
If you are planning to pay down the card near term and don't need any new credit, no worries. Keep it simple and put the charge on the Discover card. A high short term utilization above 50% aggregate will likely drop your score 30 to 40 points. Given your file is then and you have a new account a temporary 40 point drop would not be surprising.
If you go this route, don't get stressed by such a drop. It is not a negative to your credit history. Know that utilization is a point in time calculation for credit score purposes. Your score will bounce back when the card is paid down. Shown ability to pay down a large balance is a good thing.
If you need to carry a balance and make progress payments, some aggregate UT and card UT milestones to get below are 49% and 29%. However, if you plan to PIF your balance in full, then milestones are a moot point. Please report back on how your score is affected after the charge and again after paydown, if possible.
For my profile, I did this last month with my Discover card. Ran it up to 51% paid. Paid it down to 49%, which is the percentage that posted (I was testing the threshold). I believe my fico 8's dropped about 16-18 points.
Next it paid it down to 39% and regained about 4 or 5 points.
I love that Discover does off cycle reporting!
After a few other updates to hit my reports, later I will bring the Discover account down to 29% and observe the point gain on fico 8.
This account reports on the 12th for me so by then may reduce the utilization to below 20% or 10%. I will have to pick one. I do not want Discover to question why I am repeatedly requesting off cycle updates.
One thing I have noticed is when you (I) request an off cycle update, only the balance is updated or more accurately explained, the monthly payment that may be due is not adjusted.
Has anyone experienced that?
@Thomas_Thumb wrote:@Credit4Growth It would be nice if you put your results in a summary table and report it. One piece of missing information from your test is change in aggregate revolving utilization. Include a calculation of that at the time scores are pulled.
In the OPs case over 95% of total CL is associated with the Discover card. I'm guessing you have more than one card and your Discover as a % of total is not as high as the OP's
You are right on multiple points in your post.
I know posting the info will help but ilhis had been a computer issue for me lately, now resolved * (purchased a new one but have yet to open it up and use while at home.
I am not at home too much but when I am my time and attention I biased toward my 2 very young munchkins! Hopefully soon to be 4!
Aggregate utility is always posted on signature. I have 2 revolvers with a balance. Discover at 39% and PSECU at $1.00.
Prior to beginning my aloof undocumented testing I reduced the Discove balance to $0.00 and 0% utility. So at that point in time my Aggregate Utility was approximately 0% July 29th
Then A.U. of 7.9% while Discover was at 51% so in Fico terms this is 8% utility. August 1st-ish
Then next statement closing was August 12th... A.U. was 8% and individual was 49%
At statement closing the A.U. was 6.47%, so 6% and the Discover individual account was at 39% - this was onSept 12th.
Today the A.U.and individual utility is still the same but I have listed in my Signature as 7%
I have many other factor that will be changing over the next few day as accounts update.
I know this is not what you were looking for but I hope it gives some insight.
1 additional negative effect I notice was the Fico resiliency score changed for about 54 to 66..
That was dissatisfying... right now, for me, it is time to clean up my reports, put as much spend on my other account and PIF. I a prepping for an app in (hopefully) November with AOD who I believe does a manual review. I would like to app for a CC and then possibly car loan and Business credit before any of those two accounts hit! 👋