How to calculate utilization

jake619 · ‎11-13-2012

I can calculate utilization two different ways but don't know which way the CB's do it.

For example using easy math, I'd prefer to use AVG B. But is this right?

CL	Bal	Util
1000	900	90.0%
2000	100	5.0%
		47.5%	◄--AVG A

CL SUM	Bal SUM	Util
3000	1000	33.3%	◄--AVG B


GangnamFICO wrote:
Because the chicks dig it when I throw down the card to the waiter and...it comes in handy if I'm short on cash until payday and need a short spot. AMEX gets the booty, and that's important when you're a Pirate.

Minor vulgarity edit --Rev

llecs · ‎08-04-2007

It's B.

If you use A, then it's lopsided. Let's say you have a $0 balance on a $500 CL CC. Util is at 0%. And let's say you have a $4999 balance on a $5000 CL CC. Then util is at 99%. The average of 0% and 99% is 49% give or take. Your util can't be said to be 49%, it's at 91% in this exampe.

jake619 · ‎11-13-2012

llecs wrote:
It's B.

Thanks. I like that calculation better anyway.


GangnamFICO wrote:
Because the chicks dig it when I throw down the card to the waiter and...it comes in handy if I'm short on cash until payday and need a short spot. AMEX gets the booty, and that's important when you're a Pirate.

Minor vulgarity edit --Rev

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How to calculate utilization

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