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Card usage question

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IamB2
Established Contributor

Card usage question

Ok, I ma looking for some clarification. I've been reading some conflicting reports about how much of your available credit should you use. I don't mean how much balance to allow the card to report. I am specifically referring to the following scenarion..

 

I use a lot of my available credit every month. I use one card to pay most of my bills, but I have never allowed it to report more than 10%. My question is am I doing any harm by using so much of the credit limit? Does FICO take into account "High Credit" or "Largest Past Balance"?

 

I hope I am making sense..

FICO® EQ 717 (3/5/15); TU08 732 (3/5/15); EX: 723 (3/5/15) - Last app 3/15/15; Inquiries: A TON!

CITI ThankYou Preferred - CL: $2,000




Starting Scores: 590s on 12/2013. Hover over card image to view details! *After Amex approvals - [I was supposed to be] Gardening!*
Message 1 of 5
4 REPLIES 4
DaveSignal
Valued Contributor

Re: Card usage question

For the FICO utilization calculation, high credit is not a consideration.
EX:694 TU:744 EQ:777
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Message 2 of 5
IamB2
Established Contributor

Re: Card usage question

Great thanks!

 

So showing that you use a lot of the credit, but pay it off is a positive thing or is it viewed as higher risk? Not just by the FICO score, but also potential lenders?

FICO® EQ 717 (3/5/15); TU08 732 (3/5/15); EX: 723 (3/5/15) - Last app 3/15/15; Inquiries: A TON!

CITI ThankYou Preferred - CL: $2,000




Starting Scores: 590s on 12/2013. Hover over card image to view details! *After Amex approvals - [I was supposed to be] Gardening!*
Message 3 of 5
guiness56
Epic Contributor

Re: Card usage question

There are situations when the CL on a revolving CC are not reported.  In those instances the high balance would be used for utilization.  If yours reports the CL there is nothing to worry about there.

 

If you are letting 10% or under actually report that is good.

 

Yes, using the credit but paying it off is a good thing.  The CCC will more than likely offer higher CLI and other lenders will see you use your credit wisely and responsibly.

Message 4 of 5
IamB2
Established Contributor

Re: Card usage question


@guiness56 wrote:

There are situations when the CL on a revolving CC are not reported.  In those instances the high balance would be used for utilization.  If yours reports the CL there is nothing to worry about there.

 

If you are letting 10% or under actually report that is good.

 

Yes, using the credit but paying it off is a good thing.  The CCC will more than likely offer higher CLI and other lenders will see you use your credit wisely and responsibly.


guiness56 Thank you so much. I am glad I finally got some clarification. The CCC does report the CL so that isn't an issue.

 

Thank you, again.

FICO® EQ 717 (3/5/15); TU08 732 (3/5/15); EX: 723 (3/5/15) - Last app 3/15/15; Inquiries: A TON!

CITI ThankYou Preferred - CL: $2,000




Starting Scores: 590s on 12/2013. Hover over card image to view details! *After Amex approvals - [I was supposed to be] Gardening!*
Message 5 of 5
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