What is better, lower util. or longer AAofA

Anonymous · ‎01-11-2011

I'm thinking of getting another card or two to increase my CL and thus lower my util.

I currently have:

Current utilization is 44% with four revolving accounts.

AAofA is about 4 years.

NO inq in last 12 months.

EQ- 766

TU- 761

Will I get a bigger score pop with the increased CL and thus lower util, or will the inquiries and reduced AAofA hurt more than the decreased util?

which cards would you apply for?

I currently have Wells, Cap One and USAA and very small with Orchard from my rough credit years.

OptimalCS · ‎01-11-2011

I'm a big believe in getting rid of debt. In my opinion your best strategy is to payoff the debt you currently owe, thus lowering your utilization. I think credit sore is sometimes overrated. We need to focus more on getting rid of debt and staying out of debt.

"Wisdom is the principal thing..."

AndySoCal · ‎01-11-2011

Have you thought about credit line increase on an existing credit card? I read on forum about the Capital One Steps program . Which helps in getting a increaded credit limit. Search the forum to find more info.

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fused · ‎01-11-2011

@Anonymous wrote:

Will I get a bigger score pop with the increased CL and thus lower util, or will the inquiries and reduced AAofA hurt more than the decreased util?

CC util impacts FICO scores more than inqs and AAoA. Here's a link for more info.

What's In Your FICO Score

vanillabean · ‎01-11-2011

@fused wrote:

CC util impacts FICO scores more than inqs and AAoA.

Yes, 15% (length of credit history) plus 10% (new credit) is 25% and as such less than 30% (amounts owed), but I don't know if that approach makes any sense.

The distribution of each of the three categories is likely not the same. The median value of length of credit history for instance is massively warped due to unrestricted AU.

I also don't think the pie is cut in stone; there's probably a different pie distribution for each scorecard.

As for credit limits, it may well be human nature that higher limits lead to higher spending. If a lower util is wanted, less reported debt is something to consider.

The Long, Twisted History of Your Credit Score

smallfry · ‎01-14-2011

You can cure a utilization problem with a payment but a poor AAofA takes years to improve.