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Utilization..

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Anonymous
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Utilization..

Is their any way that high utilization could have a longterm effect on your credit score? 

 

For example, say I carried 75% utilization for 1 year and then reported a good AZEO, would that score be as high as if I reported AZEO for the entire previous year?

 

Assuming no other credit changes...

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Anonymous
Not applicable

Re: Utilization..

In your example, the scores would be identical.  When it comes to scoring, there is no benefit of long term AZEO and no harm to long-term high utilization.

 

But, that's scoring.

 

You have to also take into account a manual review.  Eventually lenders are going to be able to use trended data, allowing them to look back 12 or maybe 24 months to see your utilization history.  We aren't quite there yet, but I would anticipate this happening eventually.  Also know that your own lenders naturally keep strong records on your accounts.  For example, if your 75% utilization revolver is through Major Bank X and 2 years from now you apply or loan or other credit product through Major Bank X, they'll certainly know that you rolled with 75% utilization on one of your accounts for an extended period of time and could use that internal knowledge in future lending decisions.

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