FICO scores weigh revolving account utilization more heavily than installment util, so you should focus on paying down your revolving account balances. Score increases / decreases occur as utilization passes below / above the utilization thresholds for FICO scoring: 89%, 69%, 49%, 29%, and 9%. Those thresholds apply to both individual and aggregate revolving util.
You also should be monitoring your FICO scores as those are what the overwhelming majority of lenders use to make credit decisions. CK scores are not FICO, they are of the Vantage 3 model which differs from FICO in how it weighs various aspects of your credit profile. It is also often much more volatile in its response the changes in your profile. Vantage and FICO scores can differ by as much as +/-100 points on some profiles. I believe we only know of one lender that uses Vantage (Synchrony) - and they use Vantage 4, not 3.
@Anonymous wrote:Got it.
I will focus on geeting my revolving under 29%.
Perfect. You'll see a nice increase once you get there.
And, if you really want to maximize your FICO scores (and this may take a bit longer to achieve, but just as an FYI) get aggregate util below 9%, with no more than 1/3 of your cards reporting an individual balance of less than 29% its respective credit limit.
Also - (if you didn't already know) you can get all 3 FICO scores by signing up for the $1 / 7-day trial at Experian.com. Just be sure to cancel before the trial ends if you do not want the monthly service. You can get your scores now so you have your starting point, and then sign up for the trial again once you reach your <29% goal.
@Anonymous wrote:Is there a utilization in personal loans.
Does it matter for FICO.
Here is my dilemma.
Overall CC Utilization is around 42%, got couple of CC at 65% util (70% of balances on 0% promo, rest on low 5-7% rate).
Personal Loan1 - 20K at 8.2% (58% Util)
Personal Loan2 - 10K at 7.6% (New loan, 100% util)
Score (CreditKarma) - 669 & 659
AAoA - 7yrs, clean history, 2 inq, 27 accts. 2 new CCs and 1 loan opened in last 60 days.
Should I focus on paying some balance on the new personal loan2 to reduce utlization, to around 75-80%.
Or focus on paying off CC. My goal is now to get my score to 700's soon.
Your focus should be on paying down credit cards.
You're not going to get any significant bounce by paying down installment loans until your total balances are down to around 9% or less of the total original loan amounts.
