Rebuilding Your Credit

[TravisD]

Not sure if this should be in the CC forum if it is I'm sorry.

Not 100% sure how utilization works. I have 3 cards with a total credit of 2600. All cards are paid off except for one that is $300 spent out of $500. Does utilization go for all cards as a whole or individual?

[pizzadude]

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TravisD wrote:
Not sure if this should be in the CC forum if it is I'm sorry.

Not 100% sure how utilization works. I have 3 cards with a total credit of 2600. All cards are paid off except for one that is $300 spent out of $500. Does utilization go for all cards as a whole or individual?

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Both individual card and total card balances & limits are scored as part of FICO revolving credit utilization.

[Vtso4]

Utilization is caculated by the sum of all of your credit card limits divided by the sum of all your credit card balances. So in your case:

300/2600=.11 or a 11 percent utilization rate. Usually the credit bureaus like to see anywhere between a 1 to 9% utilization rate.

[TravisD]

Thanks guys!