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Established Member
JackStraw
Posts: 24
Registered: ‎07-20-2008

Utilization Question

Hey folks, Quick question about utilization. Is is strictly a percentage thing or is it based on actual dollar amounts? I have one open CC - First Premier. My limit is $250 and I just sent August's payment in to bring me down to an $8 balance (from $88). That brings me from roughly 30% to 3%. Will that help my scores any or because it's such a small number will the impact not be that much? I know I should have at least one more active account and in the next month or so will probably go for a secured card through BofA or Orchard, but I wanted to get this one paid down first. Thanks, JS
7/20/08 ; TU-547, EQ-554, EX-523
7/31/08 ; TU-561, EQ-558, EX-529
8/27/08 ; TU-598, EQ-571, EX-574
6/09 ; TU-653, EQ-589
10/16/09; TU-678, EQ-623
12/15/09; TU-681, EQ-627
4/30/10; TU-676, EQ-636
8/18/10; TU-697, EQ-642
2/06/12;TU-658
Established Contributor
jaybird201
Posts: 672
Registered: ‎07-05-2008

Re: Utilization Question

Utilization is measured as a percentage of your total revolving credit limits. Lowering your utilization from 30% to 3% will definitely give your score a bump.
Moderator Emeritus
cheddar
Posts: 6,794
Registered: ‎09-29-2007

Re: Utilization Question



JackStraw wrote:
Hey folks, Quick question about utilization. Is is strictly a percentage thing or is it based on actual dollar amounts? I have one open CC - First Premier. My limit is $250 and I just sent August's payment in to bring me down to an $8 balance (from $88). That brings me from roughly 30% to 3%. Will that help my scores any or because it's such a small number will the impact not be that much? I know I should have at least one more active account and in the next month or so will probably go for a secured card through BofA or Orchard, but I wanted to get this one paid down first. Thanks, JS


Actual dollar amounts are irrelevant.  Only the percentage matters.
 
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