cancel
Showing results for 
Search instead for 
Did you mean: 

Credit Utilization & Reporting

tag
backtogood
New Contributor

Credit Utilization & Reporting

I am just curious as to if any of the credit reports take into consider your previous utilization rates vs new reported utilization?

 

Say I have out of 11 months a utilization rate of 75%, then on the 12th months reporting paid down to 5% utilization. Does any of the scoring

factors/indicators take into consideration previous months utilizations rate? Or is it simply adjusted month to month?

 

 I understand there will be a score change, but would it be as significant to one who would carry a 5% utilization over the 12 months with the same exact report vs the on above i just explained??

Message 1 of 4
3 REPLIES 3
takeshi74
Senior Contributor

Re: Credit Utilization & Reporting

Your utilization refers to your current utilization. There's nothing to "take into consideration" from your prior utilization to calculate your current.  Credit used/credit available is all there is to determining utilization.

 

Your second question also makes no sense.  If one person has a 5% utilization and one drops from 75% to 5% then of course the person who was at 5% has a less significant impact since the person who was always at 5% didn't change utilization at all.

 

Message 2 of 4
Bsong
Regular Contributor

Re: Credit Utilization & Reporting

What I would suggest is signing up for CreditKarma or Creditsesame (BOTH FREE). They display your current utilization and have a tool that shows how "high utilization" vs "low utlization" would affect you. 

Message 3 of 4
myjourney
Super Contributor

Re: Credit Utilization & Reporting


@backtogood wrote:

I am just curious as to if any of the credit reports take into consider your previous utilization rates vs new reported utilization?

 

Say I have out of 11 months a utilization rate of 75%, then on the 12th months reporting paid down to 5% utilization. Does any of the scoring

factors/indicators take into consideration previous months utilizations rate? Or is it simply adjusted month to month?

 

 I understand there will be a score change, but would it be as significant to one who would carry a 5% utilization over the 12 months with the same exact report vs the on above i just explained??


UTL is reported monthly and has no bearing from the previous month.

Scoring is the same way but in reality day to day with the previous month meaning nothing

Before you app think...
Have you done your research of the CC?
Does it fit your spending?
Do you have a plan for the bonus w/o going into debt?
Can you afford the AF?
Do you know the cards benefits? Is it worth the HP?
Message 4 of 4
Advertiser Disclosure: The offers that appear on this site are from third party advertisers from whom FICO receives compensation.