Available credit to limit ratio????

I could only guess at how big a difference it would make, but it would definitely make a difference. The relationship between used credit and credit limits is an important part of your score, and 85% is very high.

 

From own experience:

I used to have over 80% utilization. When I started paying it down, first nothing was happening. But when I went down to 15% (many cc companies reported about on the same date and updated the balances) my scores turned out to be considerably higher.

Hope that helps,

PawMix

 

I don't know though...I've had the same score for the past two years, on TU 591 and two years ago I was only at 10% utilization and now I'm at about 60%. In my case, it didn't make a difference.

 

It makes a huge difference if you have a high ult. with no negs. I have no negs. however i have a 64% ULT. with 8000 in CC debt. i have a 617 score. If i pay that down to 2,000 the stimultor says i would be between 696-727. So it does make a HUGE difference.

 

This is a cheat you deal>The sole purpose of which is to give them a lame excuse for overcharging you.

 

I'm not sure about the simulator. I put low and high numbers in to see what would be the difference. They all gave me the same answer. I don't rem. the figures, but an example would be....How much would my score change if I got another credit card for 1,000, then went to 50,000. Same answer. Tried it on several category's, such as Mtgs. Same answer. ?????

The stimulator may work different though.

 

I subscribe to Experian Credit Expert and Equifax. The scoribng model used by Experian is way more sensitive to utilzation that Equifax's FICO. On EQ my score has stayed at 710 even though utlization dropped from 20% to 3%. On Experian, the same drop yielded a boost from 690 to 745. My score on Experian even went up when my utilization went from 7% to 3%. Duirng this time, other factors may influenced the scores but I could still tell that Experian increased with just about every change in utilization no matter how insignificant it seemed to be.

 

That's interesting. I'll have to try it on Credit Expert.

I have only used EQ.'s simulator.

The problem is that their score can vary 50 points either way from the FICO score. So you might wonder what their simulator is really telling you.

 

Daveberk,

I completely agree. The Experian score is very sensitive to overall debt and the debt ratio or utilization.

Like you, I've been watching my scores with Credit Watch and Credit Expert. The Experian score is the easiest to influence. Any reduction in debt or debt-limit ratio is met with an immediate increase in the score.

Equifax is unpredictable and seems to change its scoring models on a whim. In my case, years of 720 FICO's went into the tank (680) when they decided to start viewing closed, and long-forgotten accounts, as a "factor". Overnight I went from having four cards to 13 - which they cited as "far too many". Nevermind that some were nearly a decade old, closed, and paid in full.

I also check my TU score and it seems to line up more with Experian and isn't hung up about the number of past accounts. TU cites "too many accounts with a balance" as a negative factor and sure enough when I quite using a couple cards and paid them in full, my TU score improved dramatically.

Experian and Transunion's scoring is somewhat predictable. Equifax/FICO is a joke.

Consider this:

Debt $32,000, no derogs, long history, util. 95% - FICO = 726.

2 years later - Debt $25,000, no derogs, even longer history, util. 75%, FICO = 681.

Meanwhile, my experian (711) and TU (731) scores have stayed well above 700 and are improving as my debt is lowered and available credit increases.

Absent any derogs, and with all factors improving and my debt decreasing, my Equifax/FICO score dropped from 726 to 681 overnight due to a change in their scoring.

What a crock!

Woeful

 

Re: Re: Available credit to limit ratio????

??????

Don't understand, would you give an example.