Which is ideal for scoring: 0% UTL/PIF or 1-5% UTL being reported

[cammyfive]

We've been rebulding with a good bit of success after a discharged CH7 over a year ago with 3 credit cards each and an auto loan each.  We'll be refi'ing one of the auto loans during the first part of 2021 with NFCU who we just got back in with.  In preparation for that refi and possibly applying for one unsecured card with PenFed I want to make sure our scored are as high as possible.  Since PenFed pulls TU here is what our scores are for that bureau....

My TU 08: 652

My TU 09: 673

Her TU:  630-640 approx

Household Income:  $150K salary with $30K or so in varying bonuses

Currently, we PIF the day before the statement date all of the cards so we show a $0 balance on all of them every month.  Would it be worth leaving, say, $10 or so on each card to show a total of a couple percentage of UTL for a higher limit?  

[Anonymous]

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@cammyfive wrote:

Currently, we PIF the day before the statement date all of the cards so we show a $0 balance on all of them every month.  Would it be worth leaving, say, $10 or so on each card to show a total of a couple percentage of UTL for a higher limit?  

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You are missing out on Fico points because you are incurring an AZ (all zero) penalty with all revolvers reporting $0.  Allowing $10 to report on one card would eliminate that penalty.  You do not want balances to report on multiple accounts, as there's a different penalty that kicks in for too many accounts with a balance.  One is all it takes.  Just make sure that the one you use is a major bankcard, avoiding store cards, credit union cards or AU accounts.

[Anonymous]

@cammyfive And make sure AZEO card doesn’t have a credit limit of $35,000 or more for TU4 or EQ5 and no higher than $27,000 for EX2.

and yes between 1 to 4% is the ideal utilization interval; however there are balance thresholds, so I recommend under $100 on one national bankcard.

[cammyfive]

Thanks!  I just read a few threads on AZEO so I think I grasp the concept.  

[Anonymous]

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@cammyfive wrote:

Thanks!  I just read a few threads on AZEO so I think I grasp the concept.  

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@cammyfive scoring Primer linked at the top of my signature is an excellent resource.

[SouthJamaica]

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@cammyfive wrote:

We've been rebulding with a good bit of success after a discharged CH7 over a year ago with 3 credit cards each and an auto loan each.  We'll be refi'ing one of the auto loans during the first part of 2021 with NFCU who we just got back in with.  In preparation for that refi and possibly applying for one unsecured card with PenFed I want to make sure our scored are as high as possible.  Since PenFed pulls TU here is what our scores are for that bureau....

My TU 08: 652

My TU 09: 673

Her TU:  630-640 approx

Household Income:  $150K salary with $30K or so in varying bonuses

Currently, we PIF the day before the statement date all of the cards so we show a $0 balance on all of them every month.  Would it be worth leaving, say, $10 or so on each card to show a total of a couple percentage of UTL for a higher limit?  

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You should let just one card report a small balance each month before you pay it off.  Believe it or not that little trick will probably get you 20 points in your FICO 8's.