How quickly/how much do credit scores rise if I reduce utilization?

Discussion / Conversation Forum
21

What’s the limit and usage? If you have three cards with a total limit of $3000, it will still help, but don’t expect to hit 800. What’s your overall profile like for a more accurate estimate?

22

Devlin said:
What’s the limit and usage? If you have three cards with a total limit of $3000, it will still help, but don’t expect to hit 800. What’s your overall profile like for a more accurate estimate?

That’s pretty accurate; my overall limit is $4400.

I have one personal loan with $3400 left. No late payments on any accounts.

Years ago I had some charged off, but I was young and careless.

23

@Mike
Reducing utilization to $10 on one card will definitely give you a solid score boost, and it also depends on how much of the personal loan is paid off. That overall limit positions you well for demonstrating responsible usage, and the accounts’ age is significant too.

24

Changes are reported at statement time, which is typically once a month. It also depends on what metric you’re looking at. I paid off all my debts, and my TransUnion score climbed from 530 to 800 in about two months. With USBar, my score settled at around 750, but my Equifax score showed about 835 with my acceptance letter, which TransUnion has never confirmed.

25

Honestly, it will likely raise your score by over 100 points.

26

I just want to add, based on your responses, you’re my hero… and reducing your utilization should raise your credit score! Just avoid carrying a balance, but keep your utilization above $0, as some suggest that having a $0 balance can make it seem like you don’t use credit at all, which might hurt your score.

27

Review older posts; credit utilization is a temporary factor and only accounts for about 30% of one’s FICO.

28

Torrance said:
Review older posts; credit utilization is a temporary factor and only accounts for about 30% of one’s FICO.

>30% of one’s FICO

It’s closer to 20%:

Credit Myth #18 - Revolving Utilization makes up 30% of your FICO score.

29

@Fifer
Read the headline of your response. I’ll stand by 30% and it’s moot if someone has a thick file.

30

Torrance said:
@Fifer
Read the headline of your response. I’ll stand by 30% and it’s moot if someone has a thick file.

I’m unsure what you’re implying.