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Utilization ?

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kjm79
Valued Contributor

Utilization ?

Hello everyone.

 

When factoring your uti, are closed cc's that carry balances factored into the formula?  I have a cc that tried to rise my APR to 30% and I decided to close the account (which after I closed it, my husband was deployed and I got the APR reduced to 6% grrrrrrrrr!).  It still has a $1,700 balance and is reporting positively.  It lists the balance but not the cl.  When I calculate my uti %'s I do not come up with what myFico says they are (off by almost 10%).  So I was wondering if myFico is including this balance int my uti % but not inlcuding the limit on the closed cc????  If I factor in the balances on my closed cc AND my Macy's Store card (which I though wasn't factored into uti %'s) I'm off by about a % or two from myFico.  Thanks in advance for any info!


CH 7 Filed 7/27/15 Discharged 11/16/15
Starting Score: EQ 620 TU 568 EX 593
Current Score (07/13/16): EQ 674 TU 649 EX 674 (FICO's 08)
Cap1 QS ($5350) (Combined QS and QS1) Discover It ($4100) MilStar ($8,600) Fingerhut ($800)
Off to the garden 05/01/16
Message 1 of 3
2 REPLIES 2
Walt_K
Senior Contributor

Re: Utilization ?


@kjm79 wrote:

Hello everyone.

 

When factoring your uti, are closed cc's that carry balances factored into the formula?  I have a cc that tried to rise my APR to 30% and I decided to close the account (which after I closed it, my husband was deployed and I got the APR reduced to 6% grrrrrrrrr!).  It still has a $1,700 balance and is reporting positively.  It lists the balance but not the cl.  When I calculate my uti %'s I do not come up with what myFico says they are (off by almost 10%).  So I was wondering if myFico is including this balance int my uti % but not inlcuding the limit on the closed cc????  If I factor in the balances on my closed cc AND my Macy's Store card (which I though wasn't factored into uti %'s) I'm off by about a % or two from myFico.  Thanks in advance for any info!


I believe if it is closed and not reporting a credit limit, then it doesn't count.  If the credit limit is reported, then it counts so long as there is a balance.  Once you pay off the balance, even if it is still reporting a credit limit, that limit will not be factored into your utilization. 

 

ETA:  Check out the "tidbits" section http://ficoforums.myfico.com/t5/Credit-Cards/Closing-Credit-Cards/td-p/347190


Starting Score: ~500 (12/01/2008)
Current Score: EQ 681 (04/05/13); TU 98 728 (01/06/12), TU 08? 760 (provided by Barclay 1/2/14), TU 04 728 (lender pull 01/12/12); EX 742 (lender pull 01/12/12)
Goal Score: 720


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Message 2 of 3
kjm79
Valued Contributor

Re: Utilization ?

Thank you for the response and the info! 


CH 7 Filed 7/27/15 Discharged 11/16/15
Starting Score: EQ 620 TU 568 EX 593
Current Score (07/13/16): EQ 674 TU 649 EX 674 (FICO's 08)
Cap1 QS ($5350) (Combined QS and QS1) Discover It ($4100) MilStar ($8,600) Fingerhut ($800)
Off to the garden 05/01/16
Message 3 of 3
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