The Truth about Credit Card Utilization

[Anonymous]

Good Evening,

Ok, so I have 2 credit cards

Capital One - Credit limit $300 (told not to spend over $90 each month, pay down to $5 balance)

First Progress - Credit limit $200 (told do not spend over $60 each month, pay down to $5 balance)

My question, is what I was told accurate, should it be lower, higher? I read your cheat sheet, but I am totally confused. I am looking to raise my FICO for mortgage approval. My lender stated that they use FICO 8 in their lending decision?

[Anonymous]

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@Anonymous wrote:

Good Evening,

Ok, so I have 2 credit cards

Capital One - Credit limit $300 (told not to spend over $90 each month, pay down to $5 balance)

First Progress - Credit limit $200 (told do not spend over $60 each month, pay down to $5 balance)

My question, is what I was told accurate, should it be lower, higher? I read your cheat sheet, but I am totally confused. I am looking to raise my FICO for mortgage approval. My lender stated that they use FICO 8 in their lending decision?

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@Anonymous I sure hope you'll share the information on the lender because I've never heard of a lender that uses version 8 for mortgages. However either way the advice is incorrect. you only wanna report a balance on one of those two cards, Report between $5 and $15 on the capital one and 0 on the progress to maximize both version 8 at all bureaus and the mortgage scores.

[Anonymous]

By the way you can spend as much as you want, what matters is how much you allow to report. So that means you pay down to a certain amount before the statement date, when it cuts, Progress $0 & Cap1 $5-$15.

[Anonymous]

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@Anonymous wrote:
By the way you can spend as much as you want, what matters is how much you allow to report. So that means you pay down to a certain amount before the statement date, when it cuts, Progress $0 & Cap1 $5-$15.

These are the dates of my credit card...Is my statement date 11/6 or  11/8

Bill Due Date: 11/3

Bill Closing Date: 11/6

Credit Reporting Date: 11/8 

New cycle starts 7th of evry month

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[Anonymous]

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@Anonymous wrote:

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@Anonymous wrote:
By the way you can spend as much as you want, what matters is how much you allow to report. So that means you pay down to a certain amount before the statement date, when it cuts, Progress $0 & Cap1 $5-$15.

These are the dates of my credit card...Is my statement date 11/6 or  11/8

Bill Due Date: 11/3

Bill Closing Date: 11/6

Credit Reporting Date: 11/8 

New cycle starts 7th of evry month

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@Anonymous Great question and gives me the perfect information to give the answer! Whatever your balance is at 11:59 PM on the sixth should be what's reported to the bureau. 

spend whatever you want and then make your payment on the due date. (this way you pay no interest) Then put between $5 and $15 on there and allow it to report on the sixth.

if you put more than that on there, just make another payment to bring it down by the sixth. 😉

[Anonymous]

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@Anonymous wrote:
@AnonymousOK so the change in percentage of revolvers probably made no difference. 👍

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@Anonymous 

Little update. Today my Cap1 Cabelas reported. Previously UTI 1% ($2 trailing interest) Updates today on Experian to 0%. Brings me to 6/11 revolvers reporting balance (55%) from 7/11 reporting balances (64%)

No change in EX8  712

EX2 mortgage +4 to 745

EX2 auto +3 to 742

EX2 bank +4 to 719

No change in aggregate (40%)

I believe my Amazon Synch will report tomorrow or Tuesday bringing me down to 5/11 revolvers with balance (45%) but might bring me down to 39% aggregate UTI (39.7%)

[Anonymous]

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@Anonymous wrote:

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@Anonymous wrote:
@AnonymousOK so the change in percentage of revolvers probably made no difference. 👍

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@Anonymous 

Little update. Today my Cap1 Cabelas reported. Previously UTI 1% ($2 trailing interest) Updates today on Experian to 0%. Brings me to 6/11 revolvers reporting balance (55%) from 7/11 reporting balances (64%)

No change in EX8  712

EX2 mortgage +4 to 745

EX2 auto +3 to 742

EX2 bank +4 to 719

No change in aggregate (40%)

I believe my Amazon Synch will report tomorrow or Tuesday bringing me down to 5/11 revolvers with balance (45%) but might bring me down to 39% aggregate UTI (39.7%)

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@Anonymous Awesome! That totally supports the theory of a 60% threshold for number of revolvers with a balance. I found 20%, we know 100% penalizes, and this supports 60%. I'd love to get evidence for 40% and 60%. I think the 33% and the 50% have been misattributed, jmho.

let me know if you cross the 40% of revolvers with a balance threshold without anything else changing, please. 

@Anonymous @Thomas_Thumb 

[Anonymous]

@Anonymous 

Went from 56% revolvers with balance to 45% (6/11 - 5/11) with no score changes. Well, my VS3 did go up 3-5pts but I'm not counting that. Should be able to get a clear reading on 45% to 36% near the start of November.

[Anonymous]

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@Anonymous wrote:

@Anonymous 

Went from 56% revolvers with balance to 45% (6/11 - 5/11) with no score changes. Well, my VS3 did go up 3-5pts but I'm not counting that. Should be able to get a clear reading on 45% to 36% near the start of November.

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@Anonymous awesome that supports my 20/40/60/80/100 theory! Looking forward to your continued updates!

@Anonymous 

[Anonymous]

@Anonymous 

Are there any DP's for a 39% aggregate UTI Threshold on 8 models?

This morning had 1 account update from 48% individual UTI to 46%. Aggregate UTI went from 40% to 39%. This is the only change.

EX Fico8 712-715

EX Auto8 710-713

Ex Bank8 708-712