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Testing Credit Card Utilization Thresholds

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Frequent Contributor

Re: Testing Credit Card Utilization Thresholds


@Birdman7 wrote:

@mowglidude No you crossed the 49% aggregate utilisation threshold. You were above it because you were at 49 point something percent.

 

Edit: There is no 39% threshold. I don't know if that was a typo? But that's true, how many revolvers with a balance did you have and how many do you have presently?


Initially, I had 12 revolvers with a balance (mostly high UT) and one AU account with a 2% UT. Presently I have three that have reported 0 balance, three that have recently reported under $100 (fees I guess),  five accounts over 60% individual UT still to update and adjust and one at 13%, which will be 0 when it reports also. 

Starting Score: 589/599/598 5/8/14
FICO® Score 8: EX 707 TU 705 EQ 708 06/19/20
Goal: 740 across all bureuas
Message 21 of 119
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Super Contributor

Re: Testing Credit Card Utilization Thresholds


@mowglidude wrote:

@SouthJamaica wrote:

@mowglidude wrote:

Today two cards posted, one from 57% - 0% UT and one from 56% - 0% UT. My aggregate UT went down from 49.47% - 39.03%, causing my score to go up 15 points, from 713 - 728 EX FICO 8. I have six more cards adjusting in the next three weeks during this test.


This is certainly consistent with 39% as a threshold for aggregate revolving utilization, but there are other factors which possibly contributed to your point gain:

 

-individual thresholds

-# of cards over 30%

-# of cards with balance

 

Congratulations! And thanks for the data points.


I still have five accounts over 60% individual UT to update and adjust, in the next few weeks..Do you think the score increase was from going below 49% aggregate UT, or being just above 39% aggregate UT?


I feel certain that you were considered to be at 39%.  The only reason I advise 48%, 38%, 28% etc rather than 49%, 39%, 29%, is to avoid being rounded up due to some added interest or annual fee or something unanticipated, to 50%, 40% or 30%.

 

I see that Birdman7 doesn't believe there is a 39% threshold. I disagree. But I can't prove it or disprove it. And I hope I never get to 39% to test it, because my scores are already severely depressed with utilization sitting at 22%.  And I suspect Birdman7 has never tested it either, and never will test it.

 

 


Total revolving limits 653000 (575000 reporting)

Message 22 of 119
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Frequent Contributor

Re: Testing Credit Card Utilization Thresholds


@SouthJamaica wrote:

@mowglidude wrote:

@SouthJamaica wrote:

@mowglidude wrote:

Today two cards posted, one from 57% - 0% UT and one from 56% - 0% UT. My aggregate UT went down from 49.47% - 39.03%, causing my score to go up 15 points, from 713 - 728 EX FICO 8. I have six more cards adjusting in the next three weeks during this test.


This is certainly consistent with 39% as a threshold for aggregate revolving utilization, but there are other factors which possibly contributed to your point gain:

 

-individual thresholds

-# of cards over 30%

-# of cards with balance

 

Congratulations! And thanks for the data points.


I still have five accounts over 60% individual UT to update and adjust, in the next few weeks..Do you think the score increase was from going below 49% aggregate UT, or being just above 39% aggregate UT?


I feel certain that you were considered to be at 39%.  The only reason I advise 48%, 38%, 28% etc rather than 49%, 39%, 29%, is to avoid being rounded up due to some added interest or annual fee or something unanticipated, to 50%, 30% or 30%.

 

I see that Birdman7 doesn't believe there is a 39% threshold. I disagree. But I can't prove it or disprove it. And I hope I never get to 39% to test it, because my scores are already severely depressed with utilization sitting at 22%.  And I suspect Birdman7 has never tested it either, and never will test it.

 

 


With what I had available to pay down debt with, I will ultimately end up at roughly 11.45% aggregate UT, or there abouts. I will have three accounts left that will be under 28% UT, none higher. Ten accounts will all be 2% or lower, individual UT. So hopefully my time at 39% will be very short lived and never back again. My highest aggregate UT was 73%, over $90K revolving debt on 6/18 and still had a 705 EX FICO 8 score lol. So I will have made a significant dent in all this. We will see if I get enough FICO points worth all that money. It may work out to about $1,000 a point for me, depending on how many points I gain.

Starting Score: 589/599/598 5/8/14
FICO® Score 8: EX 707 TU 705 EQ 708 06/19/20
Goal: 740 across all bureuas
Message 23 of 119
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Super Contributor

Re: Testing Credit Card Utilization Thresholds


@mowglidude wrote:

@SouthJamaica wrote:

@mowglidude wrote:

@SouthJamaica wrote:

@mowglidude wrote:

Today two cards posted, one from 57% - 0% UT and one from 56% - 0% UT. My aggregate UT went down from 49.47% - 39.03%, causing my score to go up 15 points, from 713 - 728 EX FICO 8. I have six more cards adjusting in the next three weeks during this test.


This is certainly consistent with 39% as a threshold for aggregate revolving utilization, but there are other factors which possibly contributed to your point gain:

 

-individual thresholds

-# of cards over 30%

-# of cards with balance

 

Congratulations! And thanks for the data points.


I still have five accounts over 60% individual UT to update and adjust, in the next few weeks..Do you think the score increase was from going below 49% aggregate UT, or being just above 39% aggregate UT?


I feel certain that you were considered to be at 39%.  The only reason I advise 48%, 38%, 28% etc rather than 49%, 39%, 29%, is to avoid being rounded up due to some added interest or annual fee or something unanticipated, to 50%, 30% or 30%.

 

I see that Birdman7 doesn't believe there is a 39% threshold. I disagree. But I can't prove it or disprove it. And I hope I never get to 39% to test it, because my scores are already severely depressed with utilization sitting at 22%.  And I suspect Birdman7 has never tested it either, and never will test it.

 

 


With what I had available to pay down debt with, I will ultimately end up at roughly 11.45% aggregate UT, or there abouts. I will have three accounts left that will be under 28% UT, none higher. Ten accounts will all be 2% or lower, individual UT. So hopefully my time at 39% will be very short lived and never back again. My highest aggregate UT was 73%, over $90K revolving debt on 6/18 and still had a 705 EX FICO 8 score lol. So I will have made a significant dent in all this. We will see if I get enough FICO points worth all that money. It may work out to about $1,000 a point for me, depending on how many points I gain.


I'm sure it will be worth your while. 


Total revolving limits 653000 (575000 reporting)

Message 24 of 119
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Super Contributor

Re: Testing Credit Card Utilization Thresholds

@mowglidude I think it was mostly due to the aggregate 49% threshold. Individual may have played a role. You should get some nice points and definitely keep us appraised of the changes please. Do you have access to version 9?

@SouthJamaicaYou are correct, I haven’t tested it. That was discovered long before I became a member and it’s been re-confirmed many times, so I didn’t really feel the need, especially considering the data points I have match up with it. I have instead focused on widening and increasing our knowledge base rather than going back and reconfirming established knowledge. But that’s not to say that I’m not open to the fact of established wisdom being incorrect, just like when I disproved the common wisdom that all accounts reset the youngest account metric. My mind is always open to evidence.

For a collection of our current FICO scoring wisdom, updated as we learn, read the following. Watch the revision dates on the bottom of the first 8 posts as they are regularly updated: Link to Scoring Primer.


RIP:

Oldest/average age varies by bureau. Estimates above.


Updated Oct 2020, unless otherwise noted.

(Forgive typos, mobile.)(Everything said is Just IMHO.)

In order to better answer your questions and record your DPs, please provide your profile stats: Any baddies? Severity and recency? (clean/dirty), Number of accounts, both open and closed on CRs (thick/thin), AoOA? (Mature/young), AOYRA-Age of Youngest Revolving Account (new accounts/no new accounts)? Open/closed loan on CR?
For example, mine is clean/thick/mature/new account, with open loan on record.
If you don't know where you fall, just detail any baddies, your number of open and closed accounts, AoOA, AOYRA and whether you have a loan on record to start.

For utilization questions, list individual and aggregate utilizations, revolving and installment, please.
Message 25 of 119
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Frequent Contributor

Re: Testing Credit Card Utilization Thresholds


@Birdman7 wrote:

@mowglidude I think it was mostly due to the aggregate 49% threshold. Individual may have played a role. You should get some nice points and definitely keep us appraised of the changes please. Do you have access to version 9?

@SouthJamaicaYou are correct, I haven’t tested it. That was discovered long before I became a member and it’s been re-confirmed many times, so I didn’t really feel the need, especially considering the data points I have match up with it. I have instead focused on widening and increasing our knowledge base rather than going back and reconfirming established knowledge. But that’s not to say that I’m not open to the fact of established wisdom being incorrect, just like when I disapproved the common wisdom that all accounts reset the youngest account metric. My mind is always open to evidence.


@Birdman7 I don't have access to FICO 9 other then once a month with my WF Propel card, EX only. As far as I know anyways. Is there a place where I can get it for free or a small fee? Does it matter that much? I don't know.

Starting Score: 589/599/598 5/8/14
FICO® Score 8: EX 707 TU 705 EQ 708 06/19/20
Goal: 740 across all bureuas
Message 26 of 119
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Super Contributor

Re: Testing Credit Card Utilization Thresholds

I don’t know of anywhere that gives it for free, unless its part of an account or business relationship and I don’t know anywhere that does it for a small fee. Experian does not even provide it, you would have to go through MF or credit.com or somewhere else.

I was just asking because you’re in a unique position of high utilisation and I am studying the new 13th scorecard and I’m trying to determine what segments someone into that card.
For a collection of our current FICO scoring wisdom, updated as we learn, read the following. Watch the revision dates on the bottom of the first 8 posts as they are regularly updated: Link to Scoring Primer.


RIP:

Oldest/average age varies by bureau. Estimates above.


Updated Oct 2020, unless otherwise noted.

(Forgive typos, mobile.)(Everything said is Just IMHO.)

In order to better answer your questions and record your DPs, please provide your profile stats: Any baddies? Severity and recency? (clean/dirty), Number of accounts, both open and closed on CRs (thick/thin), AoOA? (Mature/young), AOYRA-Age of Youngest Revolving Account (new accounts/no new accounts)? Open/closed loan on CR?
For example, mine is clean/thick/mature/new account, with open loan on record.
If you don't know where you fall, just detail any baddies, your number of open and closed accounts, AoOA, AOYRA and whether you have a loan on record to start.

For utilization questions, list individual and aggregate utilizations, revolving and installment, please.
Message 27 of 119
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Super Contributor

Re: Testing Credit Card Utilization Thresholds


@Birdman7 wrote:


......


@SouthJamaicaYou are correct, I haven’t tested it. That was discovered long before I became a member and it’s been re-confirmed many times, so I didn’t really feel the need, especially considering the data points I have match up with it. I have instead focused on widening and increasing our knowledge base rather than going back and reconfirming established knowledge. But that’s not to say that I’m not open to the fact of established wisdom being incorrect, just like when I disapproved the common wisdom that all accounts reset the youngest account metric. My mind is always open to evidence.


Any evidence that 49% is a threshold but 39% is not?


Total revolving limits 653000 (575000 reporting)

Message 28 of 119
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Super Contributor

Re: Testing Credit Card Utilization Thresholds

@SouthJamaica Yes all the threads where utilization was tested exhaustively, ABCD2199’s tests were one one the biggest that stands out to my memory.
For a collection of our current FICO scoring wisdom, updated as we learn, read the following. Watch the revision dates on the bottom of the first 8 posts as they are regularly updated: Link to Scoring Primer.


RIP:

Oldest/average age varies by bureau. Estimates above.


Updated Oct 2020, unless otherwise noted.

(Forgive typos, mobile.)(Everything said is Just IMHO.)

In order to better answer your questions and record your DPs, please provide your profile stats: Any baddies? Severity and recency? (clean/dirty), Number of accounts, both open and closed on CRs (thick/thin), AoOA? (Mature/young), AOYRA-Age of Youngest Revolving Account (new accounts/no new accounts)? Open/closed loan on CR?
For example, mine is clean/thick/mature/new account, with open loan on record.
If you don't know where you fall, just detail any baddies, your number of open and closed accounts, AoOA, AOYRA and whether you have a loan on record to start.

For utilization questions, list individual and aggregate utilizations, revolving and installment, please.
Message 29 of 119
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Super Contributor

Re: Testing Credit Card Utilization Thresholds


@Birdman7 wrote:
@SouthJamaicaYes all the threads where utilization was tested exhaustively, ABCD2199’s tests were one one the biggest that stands out to my memory.

If you're going to state it as a fact you ought to be able to point folks to the basis for it.

 

 


Total revolving limits 653000 (575000 reporting)

Message 30 of 119
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