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Established Member
Posts: 24
Registered: ‎07-20-2008
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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
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8/27/08 ; TU-598, EQ-571, EX-574
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2/06/12;TU-658
Established Contributor
Posts: 672
Registered: ‎07-05-2008
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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
Posts: 6,794
Registered: ‎09-29-2007
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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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