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Nabodost

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Lowered Utilization a great amount, very small change in credit score.
TU score 689. I was just approved for a CapOne credit card with a 10k limit. Current Util rate is 77%. After the 10k increase in limit my util rate would drop down to about 50%. I would have imagined that to be a good reduction in Utilization however according to the simulators, both here and at CapOne my score will only improve less than 10 points. The only time my score is boosted more is if I simulate a big payment bringing my util down to 50%. Shouldn't util rate improvement have the same effect regardless of whether its due to new credit or balance pay-down? Thanks everyone.

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Top Contributor
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No

Wrong, the problem with adding new credit is you're articifially lowering your utilization ratio.  The credit bureaus account for this; you get hit with a new account inquiry and a new account (which lowers your average account age).  These negatives counteracts your utilization gain.

Applying for a new card only means that you had good enough credit to obtain a new card, but doesn't show any progress on you actually paying down your debt.

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