New Member
Posts: 4
Registered: ‎06-27-2009

Balance to Limit Ratio

I'm inquiring about how important the Balance to limit ratio is in my case. I normally pay off my credit card before the end of the month, meaning everytime I get my bill/statement its for $0.


For FICO and ratio purposes do I have a 0% ratio? or what I've actually used?


Does that make sense?

Senior Contributor
Posts: 3,279
Registered: ‎08-03-2007

Re: Balance to Limit Ratio

If your credit card is reporting a 0 balance to the CRA's, then your utilization is 0%. Some CCCs list the highest balance you've had on your account, but it isn't factored into the scoring equation unless your card does not report a credit limit. This is common with no pre-set spending limit cards. If the limit isn't reported, the scoring algorithm then uses your previous high balance to calculate your utilization. 


Your utilization is the balance reported to the CRA's divided by the credit limit reported for that account. 

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