Please help me Understand utilization..

[koky]

so if am to spend 500$ and pay 490$ it leaves my utilization @ 2 % right???

[JMills]

You will always reflect your utilization on your overall credit limit, it doesnt matter the available balance. The available balance just let you know how much you have charge. You have a credit limit of $500.00 not $475.00, so when you are doing your calculations, you will always implement $500.00, untill it changes like with a credit increase.

[koky]

okay.. lets say i max out my credit card 500, but make sure to pay 495 before the statement cuts... wht will be my utilization..

[JMills]

Your utilization will be 1% $500 X .01 = $5.00 Utilization rate is 1% this is paying before it closes

But if you do't do that and the statement cuts it  will be $500  X .99 = $495 , your utilization will be 99% 

[guiness56]

Your high balance has nothing to do with your utilization.  That is the highest balance you have had on your card.

It is the reported balance that matters, nothing else.

If you paid $495 before it reported your utilization for that card would be $5/$500=1%,

It is also rounded up.

Each card is individually calculated and all together are calculated.

[DaBears]

54 divided by 500=0.108x100=10.8 round it up 11% will be your UTIL

[JMills]

Correct

[DaBears]

If your bal was 475 when the statement cut your util was 95%

[HiLine]

---

@guiness56 wrote:

Your utilization on this account would be balance of $54 divided by the CL of $500 which is 10.8% rounded up to 11%.

---

Quoted for truth

[koky]

@ DaBears my balance was 25$...