Utilization

[Sbrooks1]

I have a clean Ex with lots of lines, oldest acct 20+ yrs but lots of fairly new acts within the last three years. 08 was at 754 and the only thing that has changed is uti went from 8% aggregate to 31% -- score dropped 62 points. So, on a clean file is uti the biggest impact on score ?

[Anonymous]

Yes.  Not only is your profile clean, but it is in one of the better scorecards (due to the fact that you have an old "Age of Oldest Account" and you have several accounts total).

So given that, CC utilization is the biggest single factor that will affect your score.  More than number of inquiries, or how much of your open installment debt is paid down, or AAoA, etc.

In your case, you crossed two important breakpoints for total CC utilization: 9% and 29%.

It's also possible that one of your credit cards crossed a major breakpoint for individual utilization.  For example, if one card, looked at purely by itself, went from 25% to 52%, that could make a scoring difference.

Finally it's also possible that the number of credit cards with a positive balance went up, which is another scoring factor.

[Anonymous]

All that said, it doesn't mean that the fact that you have a bunch of inquiries and new accounts and a lower AAoA isn't important.  Those things have indeed lowered your score and all together they may be collectively as important as CC utilization.

There's no need to try to parse out exactly how much is affecting what, however.  The practical upshot is that if you lower your CC debt a lot that will help your score, and if you stop applying for any new accounts for a solid year that will also help your score.  No reason to not do both.

[Sbrooks1]

Just paid CC down to about 7%, but also still waiting on mortgage to report, not sure how that will ding me as I have at least 4 installments paid to less than20%. And do I need to keep chasing a better score now that I have my mortgage ... yes! You can't walk away from this when you have come so far. I will never not want a higher score thanks to this forum!

[Sbrooks1]

Yes CGID I had 2 cards over 50 and had balances on 3/5 cards .

[Anonymous]

You'll lose some points when the mortgage reports and you'll gain some when you get your cards paid down.  Have you thought about paying the cards off entirely?  You can and should still use one and let it report, but if you are carrying balances (and therefore paying interest) that's not to your advantage.

[Sbrooks1]

Yes I would love to pay off but my dogs were critically ill

[Anonymous]

Sorry to hear about your dogs!

Many people mistakenly get the impression that there could be a scoring advantage to carrying some CC debt.  It's a very common belief.  So I was touching base with you to make sure that you knew that as soon as you comfortably can the best thing to do is pay off all CC debt, and then after that to pay statements in full each month.

[Sbrooks1]

CGID , thank you! But, fortunately, I am educated and aware. Unfortunately, I am not well prepared savings way for more than a grand or so, and vet bills last year were almost 15000 for freak accidents in two dogs.