Utilization Problem just got worse

Anonymous · ‎10-31-2010

I had a 0 balance on all of my cards (which obviously was a no no). Well I was trying to leave a small balance on my HSBC card so I could at least have 1 card showing a balance at the end of the month. (I use my cards to pay bills then payoff the card each month)

This is where it all went tumbling down.

I submitted a payment on 10/25/10 from my bank in the amount of $225.00 to HSBC which would leave a $9.00 balance on the card. On 10/28/10 I submitted an extra payment of $4.00 online directly to HSBC because I decided I only wanted $5.00 to report.
Well, for some reason my bank sent a check instead of an electronic payment,(which is not the norm) which still hasn't posted to my acct. When I realized it Saturday, I went on line and made an extra payment directly to HSBC in the amount of $220.00 (desperate of course) It still has not posted as of today. The $4.00 payment posted. The balance $228.24 will post to the bureaus today 10/31/10.

What am I going to do? This is going to make me have a utilization of 78% on that one card (all my other cards have a 0 balance). My overall utilization will be 7.65%. I have read having such a high balance so close to the credit limit will have more of an impact then overall utilization.

How many points do you think I will lose? I am closing in November.

Anonymous · ‎10-31-2010

It may or may not have an impact. While I was playing around reading what every one says is best, I still haven't noticed much of a change between individual UTIL and total UTIL for scoring. I am sure every one's impact is different that is why there is no rhyme or reason for what works best. Only one time did I see a pretty good decline in my score because of Individual UTIL and I was at 89% UTIL. It did not stay low for long as I paid it in full and within 2 months it was only about 2 points lower then originally started. In 6 months time I actually had a few point increase to my scores.

As far as you closing in November, if you notice a fairly large decrease in your score, I believe they can do a rapid re-score before closing. I am not sure on the process and hoping some of our more knowledgable folks on here will chime in.

Good Luck

RobertEG · ‎10-31-2010

I would not fret too much. % util has no historic memory. Just take care of it next month, and nothing will be lost.

Keeping util at 1-9% each month is fine-tweaking that really only means something when you actually apply for new credit, and thus use your FICO score.

Anonymous · ‎11-01-2010

Thanks guys.