Does NFCU LOC affect utilization?

[jonmartin]

Does the NFCU Checkin LOC affect utilization? If it carries a high balance will that affect approvals for other cards? I'm confsued about that since its not a credit card but I've had it brought up to me once during a recon a while ago.

[Anonymous]

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@jonmartin wrote:

Does the NFCU Checkin LOC affect utilization? If it carries a high balance will that affect approvals for other cards? I'm confsued about that since its not a credit card but I've had it brought up to me once during a recon a while ago.

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Yes it will affect utilization.  It's considered revolving credit just like your credit cards so any balances on it are the same as balances on them.

[takeshi74]

"Utilization" is generally used to mean revolving utilization.  Revolving utilzation includes all revolving accounts. Credit cards are just one type of revolver.  A LOC is a revolver as well.

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@jonmartin wrote:

If it carries a high balance will that affect approvals for other cards?

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High is subjective.  Let's take $1,000 as an example.  Is that high?  If the limit is $2,000 that's definitely high (50%).  If the limit is $20,000 it's not as high (5%).

What is its revolving utilization?  How does that impact your overall revolving utilization?