cancel
Showing results for 
Search instead for 
Did you mean: 

Utilization Question

tag
dallasareaguy
Frequent Contributor

Utilization Question

My scores were around 570 with utilization of 85%.. I paid off a ton of card balances... when it hit 32%.. the score jumped overnight to 591... I've heard that the goal is to be below 30% (and most credit sites say it).... If I get it below 30% can I expect another jump in score? Also, if I get it down to like 8-9% will it make even more difference or am I talking only a few points or so?

 

I have some baddies that I'm working to pay off.. that I'm hoping will boost me up into the mid 650s....

 

Just getting eager... been a long climb from the cellar (480-500 scores)... and I'm trying to make everything right so I can buy a house next year.

  
CapOne QS
$10,250
 
AMEX Delta Gold
$15,000
 
AMEX BCE
$5,000
 
AMEX BCP
$1,000

AMEX HHonors
$1,600
 
Discover it
$2,000
FICO8 Scores:
EQ: 648
TU: 654
EX: 691

(as of 07/15/2017)
Message 1 of 5
4 REPLIES 4
Anonymous
Not applicable

Re: Utilization Question

The real goal for optimizing Fico scores is under 10% on one card, and zero on the rest.

Message 2 of 5
Anonymous
Not applicable

Re: Utilization Question

Does that mean ideally never spend more than 10% of available credit on that one card, or never carry a balance of more than 10%? If I spend, say $400 on a $2K CL, but PIF that month, does my score take a hit for going over 10% for part of the billing period?

Message 3 of 5
tonyjones
Valued Contributor

Re: Utilization Question


@Anonymous wrote:

Does that mean ideally never spend more than 10% of available credit on that one card, or never carry a balance of more than 10%? If I spend, say $400 on a $2K CL, but PIF that month, does my score take a hit for going over 10% for part of the billing period?


As long as you pay off the balance before the statement cuts (that's usually when lenders report it to all three CRA), you'll be fine.

 

If you do what CAPTOOL says above, I can see your scores around 630.

Current Fico Scores: (December 2023)
Message 4 of 5
Anonymous
Not applicable

Re: Utilization Question

Thanks for the clarification.

 

I think you meant the 630 comment for the OP. That would be the wrong direction for me! ;-)

Message 5 of 5
Advertiser Disclosure: The offers that appear on this site are from third party advertisers from whom FICO receives compensation.