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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 |
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.