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Utilization question

Contributor

Utilization question

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?
........???................659 (FICO)................659 (TU08) ........
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Super Contributor

Re: Utilization question


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?

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

 

March2010 FICO® ~ 695 TU, 653 EQ, 697 EX
Message 2 of 4
Established Member

Re: Utilization question

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.

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Contributor

Re: Utilization question

Thanks guys!
........???................659 (FICO)................659 (TU08) ........
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