Interesting Credit Card Utilization information I heard.

[Anonymous]

Good morning everyone!
I was watching a show about credit card utilization. The credit expert said that if your utilization is over 50% it starts deducting points. If your utilization is between 30% and 50% it is neutral, and won't change your scores if there aren't any other changes. If your utilization is 30% or less, your score improves, and continues to improve with every deduction. Obviously I knew that you get points for low utilization, but I did not know that 30% to 50% is neutral and won't cause your score to change. I figured the higher it climbs, the lower your score. Is this true or is this guy a quack? Lol

[Anonymous]

Now that's extremely good info. Is it the overall utilization or per card?

[Anonymous]

Interesting information.

[CH-7-Mission-Accomplished]

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@Anonymous wrote:
Good morning everyone!
I was watching a show about credit card utilization. The credit expert said that if your utilization is over 50% it starts deducting points. If your utilization is between 30% and 50% it is neutral, and won't change your scores if there aren't any other changes. If your utilization is 30% or less, your score improves, and continues to improve with every deduction. Obviously I knew that you get points for low utilization, but I did not know that 30% to 50% is neutral and won't cause your score to change. I figured the higher it climbs, the lower your score. Is this true or is this guy a quack? Lol

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Just curious, who was the expert?

I think he's whack.  It's true that the math slope of how bad utilization hurts you gets steeper at higher limits.  But there is still some form of one to one relationship.   Sometimes going from 1% to 5% doesn't hurt things, but after that you get hurt for every inrease in utilization.  It's just that the amount of pain starts to increase as the percent gets higher.  You get the highest pain when you are at 90% and above.

There is a very nice chart showing the precise moves on the other major credit board.  It was well researched by the master of all of this, Bob Wang.

[Chris679]

If your score is "nuetral" but you could be gaining points with lower utilization then you are still losing out on those points.

[Anonymous]

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@Anonymous wrote:
Good morning everyone!
I was watching a show about credit card utilization. The credit expert said that if your utilization is over 50% it starts deducting points. If your utilization is between 30% and 50% it is neutral, and won't change your scores if there aren't any other changes. If your utilization is 30% or less, your score improves, and continues to improve with every deduction. Obviously I knew that you get points for low utilization, but I did not know that 30% to 50% is neutral and won't cause your score to change. I figured the higher it climbs, the lower your score. Is this true or is this guy a quack? Lol

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The guy is a quack.  50% is not neutral and if you have an overall utilization of 50% your scores will nosedive.  Even at 30% yours scores will go down.   Ideally you want to be below 10% or lower.

[Anonymous]

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@Anonymous wrote:

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@Anonymous wrote:
Good morning everyone!
I was watching a show about credit card utilization. The credit expert said that if your utilization is over 50% it starts deducting points. If your utilization is between 30% and 50% it is neutral, and won't change your scores if there aren't any other changes. If your utilization is 30% or less, your score improves, and continues to improve with every deduction. Obviously I knew that you get points for low utilization, but I did not know that 30% to 50% is neutral and won't cause your score to change. I figured the higher it climbs, the lower your score. Is this true or is this guy a quack? Lol

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The guy is a quack.  50% is not neutral and if you have an overall utilization of 50% your scores will nosedive.  Even at 30% yours scores will go down.   Ideally you want to be below 10% or lower.

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I agree because I have experienced it already. Anytime your utilization goes over 30% (even on 1 card) your score will take a hit. I lost 12-18 points (depending on bureau) just for hitting 31% on 1 card - even though my overall utility was less than 10%.

[Anonymous]

I love this forum!!! Can I just say that? All of you are so helpful!!!

[Anonymous]

I will try to pull it back up and get his name. Also, if you think about it in a different way you will see more what he is saying--Yes if you go from 10% to 31% you will take a nosedive- Not because of the 31%, but because you were earning points from the 10%. But, if you go from 30% to 45% you won't see a change because it's all in the "neutral". If you go from 49% - 80% you will also take a nosedive because you are now in the losing points area. Do you see what I'm saying now? Whether it's true or not, I don't know. But that's a better way to explain it.

[Anonymous]

From my experience, going from 35% down to 5%, my score went up 70+ points. Leaving it at 35% for a month, it was stagnant.