06-29-2009 10:56 AM
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?
06-29-2009 11:24 AM
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.
myFICO is the consumer division of FICO. Since its introduction 20 years ago, the FICO® Score has become a global standard for measuring credit risk in the banking, mortgage, credit card, auto and retail industries. 90 of the top 100 largest U.S. financial institutions use the FICO Score to make consumer credit decisions.>> About myFICO