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Utilization Question

RobertK
New Member

Utilization Question

Howdy folks!

 

Question on utilization: Lets say for the month ending January, I have 6% utilization across my 2 credit cards. Then, for the month ending February, the utilization falls to 4%. Next, for month ending March, the utilization takes a slight jump to 8%. 


Question: will my credit score (through March) take a hit due to increased utilization since it went up? Or, is there some sort of range such that movement up or down within  the range does not cause one to gain or lose points? 

 

Big thank you for your responses!

 

Rob K

Message 1 of 17
16 REPLIES 16
Horseshoez
Established Contributor

Re: Utilization Question


@RobertK wrote:

Howdy folks!

 

Question on utilization: Lets say for the month ending January, I have 6% utilization across my 2 credit cards. Then, for the month ending February, the utilization falls to 4%. Next, for month ending March, the utilization takes a slight jump to 8%. 


Question: will my credit score (through March) take a hit due to increased utilization since it went up? Or, is there some sort of range such that movement up or down within  the range does not cause one to gain or lose points? 

 

Big thank you for your responses!

 

Rob K


Based upon my reading here, keeping your utilization under 9%, regardless of whether it is 1%, 5%, or 8.99% shouldn't impact your score one way or another.  That said, last month I let one card report about 7%, well above my typical 2% or so range, and got dinged a single point on my FICO 8.

I categorically refuse to do AZEO!

Message 2 of 17
RobertK
New Member

Re: Utilization Question

very interesting you got dinged a point for that. thanks for the response!

Message 3 of 17
Horseshoez
Established Contributor

Re: Utilization Question

My utilization will be back down this month; my account is currently showing $0.00 and the statement will cut some time next week so I have plenty of time to make a $50 or so charge to bring me above zero.  I'll report back on what happens next.

I categorically refuse to do AZEO!

Message 4 of 17
Brian_Earl_Spilner
Community Leader
Mega Contributor

Re: Utilization Question


@Horseshoez wrote:

@RobertK wrote:

Howdy folks!

 

Question on utilization: Lets say for the month ending January, I have 6% utilization across my 2 credit cards. Then, for the month ending February, the utilization falls to 4%. Next, for month ending March, the utilization takes a slight jump to 8%. 


Question: will my credit score (through March) take a hit due to increased utilization since it went up? Or, is there some sort of range such that movement up or down within  the range does not cause one to gain or lose points? 

 

Big thank you for your responses!

 

Rob K


Based upon my reading here, keeping your utilization under 9%, regardless of whether it is 1%, 5%, or 8.99% shouldn't impact your score one way or another.  That said, last month I let one card report about 7%, well above my typical 2% or so range, and got dinged a single point on my FICO 8.


There's a theory that there may be another threshold around 5%, but nothing concrete. I'm sure @Birdman7 would be very interested in your DPs.




Message 5 of 17
RobertK
New Member

Re: Utilization Question

yeah let us know what happens. will be very interesting to see what happens 

Message 6 of 17
SouthJamaica
Super Contributor

Re: Utilization Question


@RobertK wrote:

Howdy folks!

 

Question on utilization: Lets say for the month ending January, I have 6% utilization across my 2 credit cards. Then, for the month ending February, the utilization falls to 4%. Next, for month ending March, the utilization takes a slight jump to 8%. 


Question: will my credit score (through March) take a hit due to increased utilization since it went up? Or, is there some sort of range such that movement up or down within  the range does not cause one to gain or lose points? 

 

Big thank you for your responses!

 

Rob K


Everyone's profile is different. In my profile moves between 4 and 8% did cause score changes, but they were mild, nothing I would characterize as a "hit".

 

It's commonly believed in this forum that there are various thresholds in aggregate utilization. Based on my experience, I'm not a believer in "thresholds" in aggregate revolving utilization.

 

 


Total revolving limits 653000 (575000 reporting) FICO 8: EQ 716 TU 747 EX 715

Message 7 of 17
Horseshoez
Established Contributor

Re: Utilization Question

Geez, sorry about suggesting I'd report back on what happens during my next credit reporting round; I forgot about being approved late last month for a PenFed Plantinum Rewards card, the reporting of which hit today, and slice it and dice it any way I like, I will not be able to isolate its impact relative to anything else.  I incorrectly thought PenFed wouldn't show up on my credit reports until after the first due date, which isn't until early May.

 

So, sorry about the tease, I won't be able to deliver on my pledged to update.

I categorically refuse to do AZEO!

Message 8 of 17
RobertK
New Member

Re: Utilization Question

ahhhhh 

interesting it showed up pre first due date 

Message 9 of 17
Horseshoez
Established Contributor

Re: Utilization Question


@RobertK wrote:

ahhhhh 

interesting it showed up pre first due date 


Agreed, reporting showed up, balance and all, a month before the first due date.  To make matters worse, that card is sitting at 14% utilization as of the report; had I known it was going to report, I'd have paid it in full.

I categorically refuse to do AZEO!

Message 10 of 17
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