cancel
Showing results for 
Search instead for 
Did you mean: 

How to calculate utilization

tag
jake619
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?

CLBalUtil 
100090090.0% 
20001005.0% 
  47.5%◄--AVG A
    
CL SUMBal SUMUtil 
3000100033.3%◄--AVG B
Message 1 of 3
2 REPLIES 2
llecs
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.

Message 2 of 3
jake619
Frequent Contributor

Re: How to calculate utilization

 


@llecs wrote:

It's B.

 


Thanks.  I like that calculation better anyway.

Message 3 of 3
Advertiser Disclosure: The offers that appear on this site are from third party advertisers from whom FICO receives compensation.