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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??
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.
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.
@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