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Impact of increased aggregate utilization

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Zoostation1
Valued Contributor

Impact of increased aggregate utilization

Any ideas as to how many points I'll lose on FICO 8 if I were to go from 2/5 reporting with under 9% aggregate and well below any individual thresholds (from past experience  I lose ~4pts over 29% individual) to roughly 11-13% aggregate? I would still be under individual  thresholds.  I have somewhat  heavier spend than usual this month and I'd prefer not to have to play games and payoff early to not tank my score temporarily.  if I had a clean profile I wouldn't care since I'm not planning  to apply for any other cards,  loan, or a mortgage soon. Since have a dirty profile for another 3+ years, I worry about AA being taken since the models  just look at the eported balance and don't account for PIF.

 

Edit: corrected a bunch of typos

Rebuild Started Nov 2021
June 2022 FICO 8:
June 2022 FICO 9:
May 2024 FICO 8:
May 2024 FICO 9:
Message 1 of 6
5 REPLIES 5
Shooting-For-800
Senior Contributor

Re: Impact of increased aggregate utilization

I would not expect much change.

Of course, YMMV.

Rebuild started in 2014  -  $100k unsecured credit in 2017  -  $500k unsecured credit in 2024.

DON'T WORK FOR CREDIT CARDS ... MAKE CREDIT CARDS WORK FOR YOU!



Message 2 of 6
SouthJamaica
Mega Contributor

Re: Impact of increased aggregate utilization


@Zoostation1 wrote:

Any ideas as to how many points I'll lose on FICO 8 if I were to go from 2/5 reporting with under 9% aggregate and well below any individual thresholds (from past experience  I lose ~4pts over 29% individual) to roughly 11-13% aggregate? I would still be under individual  thresholds.  I have somewhat  heavier spend than usual this month and I'd prefer not to have to play games and payoff early to not tank my score temporarily.  if I had a clean profile I wouldn't care since I'm not planning  to apply for a mother cards loan, or a mortgage soon. Since have a dirty profile for another 3+ years, I worry about AA being taken since the models don't just look at thhe eported balance and don't account for PIF.


Moving from 9% aggregate to 11-13% aggregate will probably cost you in the neighborhood of 5-10 points in FICO 8's and 9's.


Total revolving limits 657200 (536700 reporting) FICO 8: EQ 706 TU 710 EX 708

Message 3 of 6
Thomas_Thumb
Senior Contributor

Re: Impact of increased aggregate utilization


@Zoostation1 wrote:

Any ideas as to how many points I'll lose on FICO 8 if I were to go from 2/5 reporting with under 9% aggregate and well below any individual thresholds (from past experience  I lose ~4pts over 29% individual) to roughly 11-13% aggregate? I would still be under individual  thresholds.  Since have a dirty profile for another 3+ years, I worry about AA being taken since the models  just look at the eported balance and don't account for PIF.

 


No worries. Such a small increase in UT has no impact on AA risk. It's just natural noise. Given your profile is dirty, Fico score shifts due to increased UT are a bit muted. If you are increasing # cards reporting a balance along with the increased AG UT; SJ's 5-10 point estimate is a likely outcome.

 

In general, maintaining AG UT under 29% and card UTs under 49% should avoid potential AA associated with revolving utilization.

Fico 9: .......EQ 850 TU 850 EX 850
Fico 8: .......EQ 850 TU 850 EX 850
Fico 4 .....:. EQ 809 TU 823 EX 830 EX Fico 98: 842
Fico 8 BC:. EQ 892 TU 900 EX 900
Fico 8 AU:. EQ 887 TU 897 EX 899
Fico 4 BC:. EQ 826 TU 858, EX Fico 98 BC: 870
Fico 4 AU:. EQ 831 TU 872, EX Fico 98 AU: 861
VS 3.0:...... EQ 835 TU 835 EX 835
CBIS: ........EQ LN Auto 940 EQ LN Home 870 TU Auto 902 TU Home 950
Message 4 of 6
DXness
New Contributor

Re: Impact of increased aggregate utilization

I really wouldn't worry about this, I've let some wild individual util %s post and no one has ever taken AA.  Playing the CLI game let me get breathing room (Amex is a clutch anchor in particular) so aggregate util stays in reasonable territory even when individual util on the lower limit cards blasts off into space lol.

Although it's worth noting, my pattern of spend reveals that I PIF despite letting all cards report balances every month.  The timing of when I spend most and when the statement dates are kind of creates this cycle of alternating heavy and light months where a high balance is followed by a trivial one and then back to a high one and then to a trivial one.  Lenders are much more at-ease if you are broadcasting PIF payment behavior, although I don't do this intentionally.

One of the downsides of paying off accounts before the statement date or AZEO or AZEx is that large balances may look out of place when you do need to spend heavily and that could spook someone.  If you just let these things post naturally, they become part of your normal behavior.  Ironically, being stuck on a dirty profile makes me not care about the point hit of higher util or higher util.  By the time I get to go clean, around the same timeframe as you will be, util will have fixed itself over time through CLIs and maybe a few more cards to spread spend out.  At that time, I plan to just be able to spend whatever I normally want, let it all report, and it'll be single digits both aggregate and individual.  Likewise, my scores will be fixed just by going clean.  All this stuff will solve itself without active intervention.


__

Rebuilding, FICO 8s as of February 2024:


Message 5 of 6
Zoostation1
Valued Contributor

Re: Impact of increased aggregate utilization

@DXnessI was an AZEO adherent earlier in my rebuild but gave that up and don't plan to go back to it except briefly to maximize scores if I ever apply for a mortgage.

Rebuild Started Nov 2021
June 2022 FICO 8:
June 2022 FICO 9:
May 2024 FICO 8:
May 2024 FICO 9:
Message 6 of 6
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