Utilization question

[creditchild]

how can i tell what my total utilization is?

i always thought it was done on each individual account.

i just got an alert that my score went down because my balance

on two of my accts increased. i have a walmart card which my limit

is $400 and i only used $65 and a barclays. my limit is $1800 and i

only used $328 so can someone tell me how to calculate my total

utilization? 

Thanks

[ArisGreek]

Walmart: $65 / $400 = 16% utilization

Barclays $328 / 2200 =  18% utilization

Total debt: $393 / Total CL $1800 $2200 = 17.9% utilization

[fused]

here is a thread that should help you.

Closing CCs

[JM-AM]

Your total UTIL is based on total CL which is 2200.

You have used 65 respectively on one and 328 respectively on the other which gives you a total of 393.

Which is approximately 18% (little less then) total UTIL used.

Take the total UTIL and multiply by .xx to obtain your UTIL.

Example 10% UTIL on 100 CL would be 100 multiply by .10 = 10 dollars

In your case 18% UTIL on total CL 2200 multiply by .18 = 396 dollars

Just to clarify your UTIL is based on individual and total.

[RobertEG]

FICO has stated that it scores revolving % util by weighting overall % util at approx half, and the combined effects of indiv card utils forming the other 50%.

As a a rough example, assume you have 5 cards.  Around 50% of wieghting would depend upon your overall util, and each card would be weighed at approx 10% overall impact.  Rough approximation, but it makes the comparison of relative weightings.

[fused]

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@RobertEG wrote:

FICO has stated that it scores revolving % util by weighting overall % util at approx half, and the combined effects of indiv card utils forming the other 50%.

As a a rough example, assume you have 5 cards.  Around 50% of wieghting would depend upon your overall util, and each card would be weighed at approx 10% overall impact.  Rough approximation, but it makes the comparison of relative weightings.

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Do you have a link where FICO states that?

[MarineVietVet]

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@fused wrote:

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@RobertEG wrote:

FICO has stated that it scores revolving % util by weighting overall % util at approx half, and the combined effects of indiv card utils forming the other 50%.

As a a rough example, assume you have 5 cards.  Around 50% of wieghting would depend upon your overall util, and each card would be weighed at approx 10% overall impact.  Rough approximation, but it makes the comparison of relative weightings.

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Do you have a link where FICO states that?:smileyhappy:

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I'm wondering the same thing. You've said this on more than one ocassion Robert but I have searched and searched this site for confirmation of this and have yet to find anything. I'm not saying you are wrong but I'd like to read that myself.

From a BK years ago to:
EX - 9/09 pulled by lender 802, EQ - 10/10-813, TU - 10/10-774

"Some people spend an entire lifetime wondering if they've made a difference. The Marines don't have that problem".

[RobertEG]

Sure,  I will dig up the specific Fair Isaac-sponsored webinar discussion, but it was specifically  stated in one of the three "FICO Webinars" on credit information that are included under the major tab "Education" in the top banner of this site, and then going to the Educational Videos  sub- tab, which then summarize the issues/topics addressed in each.  Overall vs indiv  util was a specific topic addressed by FICO staff, with the statement that the impact of overall % util and the combined affect of individ card utilizations carry approximately equal weight in FICO scoring.

[Lel]

Well, looks I picked the wrong webinar to listen to.

I just listened to the "Credit in today's climate" webinar.  It doesn't specifically discuss the weighting of individual vs cumulative revolving credit utilization.  But towards the end (of course) of the session, there is some discussion about how to pay down credit cards to achieve the best FICO score.  One of the Fair Isaac discussants recommended paying down the card with the highest balance relative to its credit limit - that is, addressing the individual card's utilization.  He then suggested that it would be ideal to bring down the utilization of all one's cards, as opposed to leaving one maxed out

So, while this doesn't provide any specifics about whether individual card utilization is given equivalent weight to cumulative utilization, it does support the notion that the FICO score does take into account both types of utilization.  But I think we all knew that already.

Maybe I'll listen to the "Holiday best practices webinar" on another day - unless someone else feels like summarizing the relevant information from that discussion.

[MarineVietVet]

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@RobertEG wrote:

Sure,  I will dig up the specific Fair Isaac-sponsored webinar discussion, but it was specifically  stated in one of the three "FICO Webinars" on credit information that are included under the major tab "Education" in the top banner of this site, and then going to the Educational Videos  sub- tab, which then summarize the issues/topics addressed in each.  Overall vs indiv  util was a specific topic addressed by FICO staff, with the statement that the impact of overall % util and the combined affect of individ card utilizations carry approximately equal weight in FICO scoring.

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Thanks Robert. I will listen to them.

From a BK years ago to:
EX - 9/09 pulled by lender 802, EQ - 10/10-813, TU - 10/10-774

"Some people spend an entire lifetime wondering if they've made a difference. The Marines don't have that problem".