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## How to calculate utilization

Frequent Contributor

## How to calculate utilization

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`
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Moderator Emeritus

## Re: How to calculate utilization

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.

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Frequent Contributor

## Re: How to calculate utilization

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`
Message 3 of 3