Understanding FICO® Scoring

[tryhard]

What determines the total for the credit limits.  If I go down and total the revolving accounts credit limits and balances from the ScorePower report I get a ratio of 42%.  The report says my ratio is 52%.  I would think this could have effect on my score as the report says the average is 40%.  42% is alot closer to 40% than 52%.

How do I resolve this inconsistency?

[Skiffy]

Perhaps one of your accounts isn't considered a revolving account for scoring.

For example, my Amex One card is considered a revolving account by some credit bureaus, but a charge account by others (and there, it doesn't get added in when calculating revolving utilization).

Figure out where they're getting the 52% from -- there is something that counts in a different bucket.

Another gotcha: many HELOCs (home equity lines of credit) report as revolving, which some people don't expect.

[Brammy]

That plus if you have a card like CapOne that doesn';t report limits it can really hurt you.  40%  utili won't help a lot, 30% or less is better and 10 is optimal

[MM1234]

Check all 3 Reports. I just did and found that my Experian had ONE loan amount for an item I own and its NOT on the other 2 reports. I was glad I did so I know. This tells me that this one company is only reporting to Experian. Luckly it didnt change my Ratio but if your in the same situation and its a large amount thats what may be taking you to the 52% where all others are 40% or so. Unless they are using their own internal Ranking System then that can be why. OR - maybe they are only counting CCard Debt and not like Car Loans or Furniture loans. Not sure if they do this but you need to consider all ideas.

[Brammy]

Utilization only takes into consideration revolving accounts. Now the score also takes in balances on outstanding installment accounts but thats adifferent animal and does not effect utilization percentages.

[TheNewWorldMan]

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Brammy wrote:

That plus if you have a card like CapOne that doesn';t report limits it can really hurt you. 40% utili won't help a lot, 30% or less is better and 10 is optimal

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I have a CapitalOne card (only other card I could get approved for), but I keep my balance on it under $35 or so; that way it just appears as an account in good standing without hurting my utilization significantly.

[Brammy]

New World if you have 2 cents on that card and that was your highest balance you will still get points knocked off for maxing it out.  Try maxing it out them paying it down to 0 and your utilization as well as avail credit should improve.

[dlm0820]

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Brammy wrote:

New World if you have 2 cents on that card and that was your highest balance you will still get points knocked off for maxing it out.  Try maxing it out them paying it down to 0 and your utilization as well as avail credit should improve.

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I just got my Cap One card and I'm close to maxing it out already only because of the fact that it doesn't report.  I also plan on paying it down a week before my due date and not using it again.  By that time my HHB should have reported and I can use that one.  That and whatever is in my bank account should hold me over...he he.

You have to know how to play the game NewWorld.  You need to know when your cc's report and how to manage your uti's.  Once you do that, your score should improve.