@Rebuilding69 wrote:
@Anonymous wrote:
@Rebuilding69 wrote:
@Anonymous wrote:
@Rebuilding69 wrote:
Huh? A $64 increase on a $400 card is a 16% increase isn't it? Since we're starting at 0?
Also, do you have any ideas why the system is backdating alerts for me? I'm literally getting alerts a week after they are dated.
No.
A $64 balance on a $400 card is 16% utilization. 64/400 = .16
To put it another way: if you had a balance of $1,000, and paid it down to $100, it would be a decrease of 90%; if you had a balance of $100, and charged up to $1,000, it would be an increase of 1,000%.
The % change is based upon the different between 2 points, and has nothing to do with the limit.
$0 to $64 is getting you 100% because mathematically the question is impossible. As noted already, computers can't divide by $0.
So you're saying when you go from $0 balance to anything on your accounts, it will always say 100% increase? I'm wondering if its better to keep a balance then. Or is this just a clerical thing, and the system doesn't actually view it as a 100% increase.
I don't believe the % increase really matters to FICO, does it? I was under the impression it was the utilization %.
I dunno, that's what I'm wondering. The alert came with an 8 point drop. This balance change was the only change I had. I have approximately $7k available in CC's; the overall util% change was, well, less than 1%.
I dunno, was just wondering. Just kind of weird I get dinged 8 points for an alert that talks about a specific account. If it's talking about overall util %, then the alert is worded completely wrong, and is very misleading imo.
I guess an increase of $64 out of $7k+ = an 8 point loss? Good info to know so I dont charge $64 in the future on a $0 balance card.
The FICO UTI% calculation is not only based on total UTI%, it also takes into account individual UTI% of each account. 10% is one of the UTI% 'breakpoints' and that cards individual UTI% went over that breakpoint. If it would have went over 30% you would probably have seen a bigger point drop.
Its not necessarily the amount of change thats important to the score (despite the way the alert calculates it) - you would probably see a similar change if it went from $25 to $64 - rather its just a matter of what the UTI% ends up at. Yeah, I know, I know... there is really a disconnect between the way its actually calculated and the way the alert presents it to you.
