@Anonymous Below are benchmarks for FICO 8. Scores lenders use for mortgage are EX2, TU4, EQ5; should react similarly.
Remember these aggregate utilization thresholds: 9%, 29%, 49%, 69%, 89%
Remember these individual utilization thresholds: 29%, 49%, 69%, 89%
If you're not crossing a threshold, you won't be getting points.
Look into AZEO Technique. All Zero Except One card reporting a small balance e.g. $5-$10. Use a bank card. Do not use a store card.
For mortgage scores, you want true AZEO. AU card must report zero.
Get your CC aggregate utility at or below 9% for full FICO points optimization.
Scores will react positively with one revolving credit card reporting a balance.
I would recommend reading the below from ABCD2199
The Truth about Credit Card Utilization
My 11 Rules to Credit Rebuilding
FICO Score: What to pay down first?
From Birdman7
General Scoring Primer and Version 8 Master Thread rev.5.17.20
@Anonymous wrote:WF: $0 Balance, $13,500 Credit Limit
Cap One: Reporting a $842 Balance, $10,500 Credit Limit
Chase: Reporting a $7222 Balance, $20,700 Credit Limit
Discover: Reporting a $0 Balance, $13,900 Credit Limit
Again, I thought I would get some movement on the WF paying it off from a $3193 balance but nothing. If anyone can give me any advice on what are the optimization % breaks for Chase and Cap One I would appreciate it. The Chase monthly payment is due on the 3rd so appreciate any advice in the near term. I have the money to pay down the Chase but could use it for other things so I'll be pretty frustrated if I dump $5 to $7K and it doesn't move a dime.
Also, should I pay off Cap One (it's due on the 8th)?
@Anonymous If those are your only cards:
I would recommend zeroing out your Capital One card.
I would also recommend paying down your Chase balance to $5,274 to be 25% individual utilization. That should leave you at $5,274 / $58,600 = 9% aggregate utilization. You might want to pay a little extra to account for accrued interest so it won't push you over the threshold.
@Anonymous wrote:Thanks for the insight Allzero. That would I guess explain why I got no movement on the WF update when I took from about 23% utilization down to 0 if individual was already less than 25% and you are saying there are no further breaks for individual. Althought if you are encouraging me to adopt AZEO, shouldn;t I have had some positive impact when WF went from 23% to 0?
It looks like the Chase could be the big one as it is showing 34% utilization individually and causing total utilization to be at 23%.
Were you tracking your daily score changes? If so, what CMS Credit Monitoring Service were you using? What verision of FICOs were provided? Are they the mortgage scores? Are they FICO 8s? Did the WF update on the CMS?
@Anonymous wrote:Thanks Allzero. I think that is the right approach. A key question though if I am interpretting my credit report correctly it is not counting the AU card as part of my utilization. I pulled a combine 3 score report on 1/6 and it said I had 23% utilization and my balance on my three cards at the time were $10,343 which aligns with a utilization of 23% based on total credit limit of $44,700 which would exclude the Discover card. Do you or anyone know if it counts the AU card? Based on my credit report and how it is reporting it doesn't look like it is. I guess worst case I could pay the Chase down to 9% based on the $44,700 and then I am covered either way.
Is that for FICO 8? It may be discounting the AU card by the anti-abuse algorithm. See message 3. C. All Zero Point Loss- (AU Test included)
EX2, TU4, EQ5 counts AU cards.
If you have the extra funds, the lower you can get your balance the better. I was offering the bare minimum threshold to get you there.
@Anonymous wrote:I use the service through this site (myFico) and I get daily alerts when there is any activity. WF did update. Based on Fico 8 there was no movement at least.
It uses FIco Score 8 which I know is not mortgage but it does allow me to pull the combine report once every 3 months which is what I did 1/6 where I saw the mortgage scores.
Glad you are using a good service.
The scores that is important to you is the EX2, TU4, EQ5 scores. Which uses a different scoring algorithm. You may have received a score increase on it. However, you weren't able to realize a score change because of no update.
Free or $1 you can obtain your 3 bureau FICO 8 scores and reports at Experian or CreditCheckTotal (part of Experian). Cancel in 7 day or less to avoid the re-occurring monthly charge. Wash, Rinse, and Repeat as needed. They key benefit is you can see your daily Experian FICO 2 score.
@Anonymous wrote:I pulled a combine 3 score report on 1/6...
You stated you pulled your mortage scores 1/6? When did your WF account update?