Utilization

[Anonymous]

Hello,

I just wanted to understand this better as it has been confusing me.

Do I count in my total credit lines to determine a percentage? Or do consider each card individually?

My cards: Journey @ 3k, AMEX @ 5.5k, Discover @ 500.

I know the most optimal is to have a util of 9%, but is this considering a total combined CL or just one card?

If I want the most optimal CS, and I want to use Disc to report a balance, then should I only report 9% of 500 on my Disc, and have the others report at 0?

Thanks!

[slicemans]

http://ficoforums.myfico.com/t5/forums/searchpage/tab/message?filter=labels%2Clocation&location=foru...

[Anonymous]

Ideally, you shouldn't go over 30% on one single card and 1% total will give you the best score with only one cc reporting that balance.  9% is just fine unless you're going for your highest score right now.

[Anonymous]

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@slicemans wrote:
http://ficoforums.myfico.com/t5/forums/searchpage/tab/message?filter=labels%2Clocation&location=foru...

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Really, dude?

[Anonymous]

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@Anonymous wrote:

Ideally, you shouldn't go over 30% on one single card and 1% total will give you the best score with only one cc reporting that balance.  9% is just fine unless you're going for your highest score right now.

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Okay, so 1% on one of my cards will warrant the highest score, right?

[NRB525]

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@Anonymous wrote:

Hello,

I just wanted to understand this better as it has been confusing me.

Do I count in my total credit lines to determine a percentage? Or do consider each card individually?

@Anonymous cards: Journey @ 3k, AMEX @ 5.5k, Discover @ 500.

I know the most optimal is to have a util of 9%, but is this considering a total combined CL or just one card?

If I want the most optimal CS, and I want to use Disc to report a balance, then should I only report 9% of 500 on my Disc, and have the others report at 0?

Thanks!

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What is your current score? What is your goal with optimizing score? Is it a near term app, or are you gardening and will app later?

With a $500 Discover limit, you need to decide which path you want to follow for the next few months:

1) Swipe heavily with the Discover, push the limit, disregard score and go for a CLI?

2) Manage the balance to $5 - $50 only, and try to optimize FICO score by a few points?

While you will see some score reduction in a month where your Discover card shows $400 of the $500 used, as long as you are PIF on the card, you are increasing your chances of a CLI, and you can get the card to $50 balance in any Next Month you choose, and your score should recover nicely to prep for any apps that you plan.

[Anonymous]

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@NRB525 wrote:

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@Anonymous wrote:

Hello,

I just wanted to understand this better as it has been confusing me.

Do I count in my total credit lines to determine a percentage? Or do consider each card individually?

@Anonymous cards: Journey @ 3k, AMEX @ 5.5k, Discover @ 500.

I know the most optimal is to have a util of 9%, but is this considering a total combined CL or just one card?

If I want the most optimal CS, and I want to use Disc to report a balance, then should I only report 9% of 500 on my Disc, and have the others report at 0?

Thanks!

---

What is your current score? What is your goal with optimizing score? Is it a near term app, or are you gardening and will app later?

With a $500 Discover limit, you need to decide which path you want to follow for the next few months:

1) Swipe heavily with the Discover, push the limit, disregard score and go for a CLI?

2) Manage the balance to $5 - $50 only, and try to optimize FICO score by a few points?

While you will see some score reduction in a month where your Discover card shows $400 of the $500 used, as long as you are PIF on the card, you are increasing your chances of a CLI, and you can get the card to $50 balance in any Next Month you choose, and your score should recover nicely to prep for any apps that you plan.

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Appreciate the response.

This is my first month with actual credit. Just got approved for aformentioned cards last month. I'm hovering around 700 right now, and awaiting new fico scores (want them for free). 

I am definitely already swiping heavily on Disc because I want a CLI, but I have the ability to report the $400 or $50. I always PIF. 

My statement hasn't even been generated yet and I've spent 800 on my disc already, paying it off as I use it. 

I'm gardening until next year so I can app for Freedom/DC/SM/Chase AARP. 

[NRB525]

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@Anonymous wrote:

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Appreciate the response.

This is my first month with actual credit. Just got approved for aformentioned cards last month. I'm hovering around 700 right now, and awaiting new fico scores (want them for free). 

I am definitely already swiping heavily on Disc because I want a CLI, but I have the ability to report the $400 or $50. I always PIF. 

My statement hasn't even been generated yet and I've spent 800 on my disc already, paying it off as I use it. 

I'm gardening until next year so I can app for Freedom/DC/SM/Chase AARP. 

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Then you have the perfect opportunity to provide some useful datapoints here. With a clean file, starting at 700, it would be interesting to see how your score responds over a series of months to reporting balances at $50, $250, $400 for example. And that Discover statement will be a good solid FICO score feedback.

One factor that may influence the scores, since you are fairly new to credit, adding months of good payment history may, all by itself, begin raising your score.

[Anonymous]

Don't kill yourself trying to get those Discover cli's. I too started with a $500 limit in December,  had a heated argument with an analyst in April and 10 days later was raised to $800, and last month after the statement closed was auto raised to $1300.

As I was told, Discover doesn't give large increases. You'll probably see slow steps like me. If you have a longer credit history over a few years and have been with them a few years the clis may be larger.

I would just charge a few hundred a month if you want to,  pay it down to under $50-$60 before the statement cuts and let time run its course. You may very likely attract a new credit card with a limit of $2000+ and go for another 15-16 months before you get that from Discover.