improvement of utilization?

[Anonymous]

If I am improving my Utilization from 85% to 55%, what type of improvement might I see in my scores, and how quickly?

[Junejer]

In my bucket, I see 8-10 points for every 10% of util decrease. You should see it immediately upon update by the CRAs.

[RobertEG]

A lot depends upon your scoring bucket.  Also, is the %util drop on just one card, or it it overall % util?

If it is overall util, that could amount to an increase of up to 40 pts.

[Anonymous]

The percentage change I showed is my overall utilization improvement.  The impact is from a single card going from $7,000 balance to $3,000 balance, my overall credit limit is $17,300 going to about $9,800.

And how do I know what my "scoring bucket" is?

Message Edited by smo65d11 on 12-17-2008 08:17 AM

[haulingthescoreup]

What's the CL on the individual card, and what is your total CL (sums of CL's of all open revolving credit)?

In other words, $3K out of how much, and $9.8K out of how much? (individual balance / individual CL; sum of all balances / sum of all CL's)

We all take wild stabs at guessing our scoring buckets, which is a closely-held FICO secret. Score buckets allow you to be compared to other consumers with similar backgrounds. So there's one for those who have had BK's, for instance, another for those with collections, one for those with very short history, more depending on varying lengths of history.

It's not going to vary all that much, I don't think. It's basically a question of what's happening to your overall util. It seems as though there are various "tiers", and we also have to guess at those. Educated guesses include:
85% and above (= maxed out)
50% - 84%
30% - 49%
20% - 29% - - - * * * again, these are guesses!! * * *
10% - 10%
9% and below.
Some have indications that there's a final bump at 3% and below, or thereabouts.

As for individual card util, it looks like your scores might survive one high-util card, but two or more will hurt you, even if you have so much total credit that your total util isn't really hurt.

[Anonymous]

My CL's are as follows:

Chase Visa $7,500,-  had since 1997, $3,000 Bal

Crown Jewelers $2,500, - 2008, $0 Bal

Direct Rewards Discover $700, -2007, $500 Bal

Capital 1 $1,250, -2007, $1350 Bal that I am working on paying a good deal of in the next couple of months!

Sears $350, had since 1996, $0 Bal

AMEX $5,000 CL but it shows 0 CL as it says it has a "no-pre-set spending limit"?, 2008, $4,800 Bal

Should I consider my credit cards to have a CL of $12,300 rather than $17,300?

[haulingthescoreup]

Your CL's are the amount of credit extended to you by each lender, not by what you have left. So, let's see:

Chase Visa $7,500, $3,000 Bal <-- 40% util
Crown Jewelers $2,500, $0 Bal <-- 0% util
Direct Rewards Discover $700, $500 Bal <-- 71%
Capital 1 $1,250, $1350 Bal <-- 108%
Sears $350, $0 Bal <-- 0%
AMEX $5,000 CL but it shows 0 CL as it says it has a "no-pre-set spending limit"?, 2008, $4,800 Bal <--96 - 100%

Without the AmEx:

total util = $4850 / $12,300 = 39.4%

It's trickier figuring with the AmEx. EQ and EX should be ignoring it, as I understand, and TU should be including it, using the highest ever reported balance. I don't know if you ever got it to $5K, or if $4800 is the highest you got. Going with $5K, on TU you have:

total util = $9650 / $17,300 = 55.8%

Right now, your biggest worry should be American Express closing you out. I'm sure they're deeply alarmed by you being over your limit on Cap1, plus maxed out on their own card. That 71% on the HSBC Discover doesn't help either.

As you said, your first priority is the Cap1 card, but that AmEx needs serious attention as well. You might also think about getting the Discover down to $340 (49%.)

I hope it works out for you, but I think that you ought to anticipate having your AmEx closed, and possibly the Cap1 as well. (Don't know if you've talked to them.) One over-maxed card, one maxed card, and one nearly-maxed card are going to scare someone badly, most likely AmEx.

[Anonymous]

Yes I know, I am scrimping and saving and my husband and I agreed that we were buying NO Christmas gifts this year so we can continue working hard on cutting every non-essential bill out.  Hopefully this paycheck I can get that Capital 1 paid down to what you recommended, and then my Christmas Bonus should take care of at least half of that AMEX.  I am working very hard to get my scores up to 700 so that we can refinance our home and rental property that we are stuck with until the market improves enough to sell it, that will be such a load off of our monthly expenses!

[haulingthescoreup]

Sounds like you have a plan! Hope it all falls into place for you soon.

[Anonymous]

thank you!