Highest Recommended Credit Card Utilization?
Author: Brammy
Posted: Sat Mar 31, 2007 8:12 pm
Post subject: Questions for the experts
What is the highest utilization you would recommend on any one card if your overall utilization stays below 30%?
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Author: xace
Posted: Sat Mar 31, 2007 8:16 pm
Post subject:
I personally stay under 50% for each individual card. I also try to stay under 30% over all my accounts.
Author: Brammy
Posted: Sat Mar 31, 2007 8:22 pm
Post subject:
Thanks I was trying to figure out where to set the credit imit in Money cause its 0 percent for a year but 2% cash back. Dont want to be ratejacked but DO ant to take full advantage by xfring purchasesto my MMF for as long as possible.
Too bad it does have a 3% BT fee though. Figured this was probably he best route in that case.
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Author: nativechild48
Posted: Sat Mar 31, 2007 11:51 pm
Post subject:
Try equalizing utilization, if possible, but by all means DTI 30% or lower.
Author: Polonius
Posted: Sun Apr 01, 2007 1:31 am
Post subject:
Recommend for what purpose? If you want to keep your credit score high for ego or some similar reason, pay everything in full each month--recommended utilization: 0.
But if you want to take advantage of the credit you have available, use it. You won't get into trouble if your overall utilization is under 50% and you're under 50% on each card too. Odds are you won't get into trouble even if you have a few cards using 89% or so, as long as the overall utilization is under 50%.
What's the point of having a huge amount of credit available to you if you refuse to use more than 30% of it?
_________________
Polonius
"Neither a borrower, nor a lender be; For loan oft loses both itself and friend"
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Author: hdporter
Posted: Sun Apr 01, 2007 3:12 am
Post subject:
Polonius wrote:
Recommend for what purpose? If you want to keep your credit score high for ego or some similar reason, pay everything in full each month--recommended utilization: 0.
But if you want to take advantage of the credit you have available, use it. You won't get into trouble if your overall utilization is under 50% and you're under 50% on each card too. Odds are you won't get into trouble even if you have a few cards using 89% or so, as long as the overall utilization is under 50%.
What's the point of having a huge amount of credit available to you if you refuse to use more than 30% of it?
I think general advice varies depending upon score. Someone who has a 750+ score may well be underutilizing credit relative to the opportunities out there and should consider pushing the ratios. Someone <680 might do well to keep their ratios very conservative to maximize the chances of lower cost credit and greater access to good offers.
Similarly, an account or two over 50% is likely to hit someone's score pretty hard if they're <680, whereas there's going to be a lot of tolerance at 750+.
I don't think it's likely that you overlooked this aspect of the question, *P* -- just taken for granted that it's a reasonably strong credit who would be focussing on utlization vs. other scoring factors.
My own situation is a utilization of 18%, with most accounts under 30%, 3 at 30%-40% and 1 at 50%-60%. I have 12 accts w/ balances outst; 14 at 0 bal. My scores run about 730. There's good evidence in my myFICO report (yeah ... I pay up for that ego check every now and then that the modestly 50+% a/c is nailing me pretty good.
With no adverse info reported now, 8 inquiries are the biggest hit cited, but utilization is cited as second - despite the sub 20% total util. On the occasions where I've pushed all a/c's below 40% my score runs about 750, thus what I count as moderate util now is hitting me for about 20 pts. No problem since I'm still above 720 -- but a significant factor for someone who otherwise would be in the 680-700 range (especially because I suspect similar util at that score tier would be good for a 30-40 pt hit).
Bottom line, one's score position can be a significant factor to account for in deciding how much to leverage one's available credit. But, again, if you don't intend to apply for credit in the near future and you have a extended 0% offer in hand, even if you scores are somewhat subpar there's good reason to run that acct to 80% provided overall util is <30% and simply ride out the short term score hit. (Exactly as you recommend, *P*
CardRatings.com is the most comprehensive source for comparing credit card offers. Please visit CardRatings.com to view the best rated credit cards!
Posted: Sat Mar 31, 2007 8:12 pm
Post subject: Questions for the experts
What is the highest utilization you would recommend on any one card if your overall utilization stays below 30%?
CardRatings.com is the most comprehensive source for comparing credit card offers. Please visit CardRatings.com to view the best rated credit cards!
Author: xace
Posted: Sat Mar 31, 2007 8:16 pm
Post subject:
I personally stay under 50% for each individual card. I also try to stay under 30% over all my accounts.
Author: Brammy
Posted: Sat Mar 31, 2007 8:22 pm
Post subject:
Thanks I was trying to figure out where to set the credit imit in Money cause its 0 percent for a year but 2% cash back. Dont want to be ratejacked but DO ant to take full advantage by xfring purchasesto my MMF for as long as possible.
Too bad it does have a 3% BT fee though. Figured this was probably he best route in that case.
CardRatings.com is the most comprehensive source for comparing credit card offers. Please visit CardRatings.com to view the best rated credit cards!
Author: nativechild48
Posted: Sat Mar 31, 2007 11:51 pm
Post subject:
Try equalizing utilization, if possible, but by all means DTI 30% or lower.
Author: Polonius
Posted: Sun Apr 01, 2007 1:31 am
Post subject:
Recommend for what purpose? If you want to keep your credit score high for ego or some similar reason, pay everything in full each month--recommended utilization: 0.
But if you want to take advantage of the credit you have available, use it. You won't get into trouble if your overall utilization is under 50% and you're under 50% on each card too. Odds are you won't get into trouble even if you have a few cards using 89% or so, as long as the overall utilization is under 50%.
What's the point of having a huge amount of credit available to you if you refuse to use more than 30% of it?
_________________
Polonius
"Neither a borrower, nor a lender be; For loan oft loses both itself and friend"
CardRatings.com is the most comprehensive source for comparing credit card offers. Please visit CardRatings.com to view the best rated credit cards!
Author: hdporter
Posted: Sun Apr 01, 2007 3:12 am
Post subject:
Polonius wrote:
Recommend for what purpose? If you want to keep your credit score high for ego or some similar reason, pay everything in full each month--recommended utilization: 0.
But if you want to take advantage of the credit you have available, use it. You won't get into trouble if your overall utilization is under 50% and you're under 50% on each card too. Odds are you won't get into trouble even if you have a few cards using 89% or so, as long as the overall utilization is under 50%.
What's the point of having a huge amount of credit available to you if you refuse to use more than 30% of it?
I think general advice varies depending upon score. Someone who has a 750+ score may well be underutilizing credit relative to the opportunities out there and should consider pushing the ratios. Someone <680 might do well to keep their ratios very conservative to maximize the chances of lower cost credit and greater access to good offers.
Similarly, an account or two over 50% is likely to hit someone's score pretty hard if they're <680, whereas there's going to be a lot of tolerance at 750+.
I don't think it's likely that you overlooked this aspect of the question, *P* -- just taken for granted that it's a reasonably strong credit who would be focussing on utlization vs. other scoring factors.
My own situation is a utilization of 18%, with most accounts under 30%, 3 at 30%-40% and 1 at 50%-60%. I have 12 accts w/ balances outst; 14 at 0 bal. My scores run about 730. There's good evidence in my myFICO report (yeah ... I pay up for that ego check every now and then that the modestly 50+% a/c is nailing me pretty good.
With no adverse info reported now, 8 inquiries are the biggest hit cited, but utilization is cited as second - despite the sub 20% total util. On the occasions where I've pushed all a/c's below 40% my score runs about 750, thus what I count as moderate util now is hitting me for about 20 pts. No problem since I'm still above 720 -- but a significant factor for someone who otherwise would be in the 680-700 range (especially because I suspect similar util at that score tier would be good for a 30-40 pt hit).
Bottom line, one's score position can be a significant factor to account for in deciding how much to leverage one's available credit. But, again, if you don't intend to apply for credit in the near future and you have a extended 0% offer in hand, even if you scores are somewhat subpar there's good reason to run that acct to 80% provided overall util is <30% and simply ride out the short term score hit. (Exactly as you recommend, *P*
CardRatings.com is the most comprehensive source for comparing credit card offers. Please visit CardRatings.com to view the best rated credit cards!
posted by CardRatings.com at 7:38 PM
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