I've read some posts here that say that it is better to have less than 50 percent utilization on your credit cards and so I wanted to ask your opinions on something b/c I want to know whether I can improve my scores. (I'm trying to reach 700 on Equifax...it's already 740 on TU) I have a total of 3 credit cards. One has a $6500 credit limit and a 4000 balance. Second one has a 12000 limit and 3000 balance (was zero balance until i got laid off). Third one has a 5700 limit and 4200 balance. I was thinking of getting a 4th card with about a 10K credit limit and transfer some of the balance from 2 of the cards so that I have under 50 percent utilization on all 4 cards. Will this increase my score?
I think under 50% utilization will probably keep the cc company from raising your rates but, I doubt it'll help score wise. The average consumer only uses 22.7% of credit available to them. At 50% you are still over twice what could be considered normal. I really thin you need something under 40% before it starts to positively affect your scores.
vanili, my understanding is that you may take an initial hit on your score due to the hard pull. The best case scenario is to have between 22% and 34% utilization-but as close to 22% as possible. I is also my understanding that the score looks at all CC combined, not on a per card basis. So try and achieve 22% utilization total. Also, it may impact your score if you have too many Revolving accounts open, and it also depends on length of time accounts have been open. If you don't want to lower your EQ scores, try and get a CC that will pull from TU.
It depends on where you live. Try www.millcbs.com for starters. Also, I've been able to call the CC company and sometimes the rep knows, or can find out. Also, do a search on the board, there is alot of this information here. In addition, it may help to know your EX score as well. In my experience (I live in KS) TU is the least pulled.
Awesome..thanks for the link to the site. Turns out I do have my Experian score as well. My score on Experien is a 674.
I don't remember exactly why but I do have 2 negative items. One is a state tax lien that I'm working to remove. Again, it was b/c of an address change. As soon as I found out about it, I paid it but they filed with the CRA the day I paid it. Also, I have two late payments on a Cap one from 3 years ago (the 2 lates were as a result of the same address change mistake..may/99 and june/99). Also, I think it said that my credit history was too short. That part I don't understand b/c I have had credit for over ten years.
I would do a planetfeedback and request a goodwill adjustment on the cap one late payments. Mr.Cooke will probably pull 'soft inquirY" but will make the adjustment with your high scores and balances on other cards....
My two new MBNA accounts (Platinum-$5K CL, and LOC- $15K CL) just started reporting. Even though they are new accounts, which hurts somewhat, the addition of $20K of unused credit, which puts me well under 50%, pushed my scores up about 20-30 points.
I called a lender to ask why my Experian report seemed different from what the creditor's records show. The creditor asked if they could pull my credit file and I agreed, but they made a hard inquiry. Mr. Cooke sounds like he knows what he's doing with the soft inquiries-- and I was beginning to wonder if they could only make them during some automated scheduled periodic review. Do you have first-hand experience with him and the inquiry business?
I actually posted another thread about the cap one lates. I called and they said that they would do an investigation and then ask the CRAs to delete. They told me I could check my reports in 60-90 days to verify that the lates have been deleted.
I have not dealt with this legendary Mr. Cooke guy. I simply call customer service. See my answer above. As for soft inquiries, on my Experian report, it looks like they conduct account reviews about every other month on me.
If you call Mr. Cooke directly, tell him you are closing on a new mortgage and need to get score fixed asap, he can get it done right away. When I called him, he gave me the same 60-90 day story. After some whining, he agreed to fix asap. Two days later all three CRA's were fixed.
Several places, of which I can remember only a couple: 1)www.abiworld.org 2)CNN on Friday evening 3)many posts here 4)and my bank credit officer (who actually gave just a range of 20-30%)
Greg, Click on the first article on the left about how cc companies are sending out offers and consumers are backing away.
I don't recall the exact title. It was published by a consumer group. There was a table showing that currently consumers use 22.1% of available credit. That compares to over 23% last year and 24% 2 years ago.
