Reply
New Member
JustWatching
Posts: 3
Registered: ‎10-31-2007
0

% Credit Utilization - trying to figure out

Hello -

 

I would appreciate some input. I am trying to figure out where my utilization % is coming from for my Equifax report.

 

In the understanding your score section it states my utilization is 62%

 

I have the following accounts:

 

Best Buy $351/$4,600

Citibank $12,390/$16,000

Amex $7,144/ High balance: $28,734

Citibank: $6,755/$10,200

Discover $5,935/$11,000

Citibank (line of credit / overdraft protection): $0/$4,500

Bank of America Signature: $11,068/High balance reported:$12,331 , Credit limit not reported: $13,300

Citi (Gateway computer): $0/$4,000 (This card has not been used since June 2003. I thought it was closed but does not seem to be)

 

If I exclude Bank of America and Amex (no credit limits reported) I get 49% utlization.

If I exclude Bank of America, Amex and the old Gateway card I get 54% utilization

If I exclude Bank of America, Amex, old Gateway card and line of credit I get 59%

If I include everything I get  47%

 

Any thoughts would be greatly appreciated. Thank you.

Contributor
0x47
Posts: 92
Registered: ‎03-17-2013
0

Re: % Credit Utilization - trying to figure out

Utilization does not factor in closed cards.  I think it does factor in the balance on cards that do not report a limit, but it uses the high balance reported as a "limit."  That is assuming the card is a "revolving" account and not an "open" account.  If it is listed as "open" on the credit report I do not think it factors into utilization at all.

 

http://www.bankrate.com/finance/credit-cards/do-no-limit-cards-affect-score.aspx

 

Sounds like 48% utilization to me.

Moderator
guiness56
Posts: 22,406
Registered: ‎01-17-2008
0

Re: % Credit Utilization - trying to figure out

Utilization does factor in on closed cards if the balance and CL are reported.

 

Read the sticky in my signature about closing credit cards.  It will explain everything.

 

Also, sometimes the CRAs will factor in a collection account for whatever reason.  Not supposed to but it happens.

Frequent Contributor
OhioCPA
Posts: 471
Registered: ‎03-29-2011
0

Re: % Credit Utilization - trying to figure out

Excluding the Amex and the LOC, I get 62%.

________________________________________________________________________________
Moderator Emeritus
llecs
Posts: 32,869
Registered: ‎08-04-2007
0

Re: % Credit Utilization - trying to figure out

[ Edited ]

OhioCPA wrote:

Excluding the Amex and the LOC, I get 62%.


I think it's close. I get 62% by excluding the Amex and Gateway. If the LOC is updating, then it would be included. I imagine that a Gateway account last used 10 years ago wouldn't be factored in, as I doubt it hadn't updated in years and FICO needs to have it updating in the past several months in order for it to be included. And of course the Amex wouldn't be factored in since it is a charge card. 

 

OP, if you were looking at your TU FICO as pulled from here it would be different (ETA...at 50%). It would be different because the Amex charged is factored in, just not on Eq or EX FICO.

New Member
JustWatching
Posts: 3
Registered: ‎10-31-2007
0

Re: % Credit Utilization - trying to figure out

Thank you all for your quick responses. Very helpful.

 

I'm thinking Amex and LOC are the two excluded. I reviewed account types and the Amex as expected is "open" and LOC is "Overdraft/Reserve Checking Account"

 

And Bank of America is listed as revolving even thought they report high balance but not the actual credit limit.

 

 

And yes, my TU does show 50% utilization.

 

 

My EQ score is 687.

 

If I pay down my balances to get it down to 59% instead of 62%. Anything magical about breaking into the 50's or really just a sliding scale ?

 

Given that I have never missed a payment, never had collections, this is the only part of my credit score that needs help. Anyone venture to guess how much I need to pay down to get my score back to 700?

 

Thank you again.

Frequent Contributor
Roarmeister
Posts: 334
Registered: ‎04-21-2012
0

Re: % Credit Utilization - trying to figure out

[ Edited ]

JustWatching wrote:

If I pay down my balances to get it down to 59% instead of 62%. Anything magical about breaking into the 50's or really just a sliding scale ?

 

Given that I have never missed a payment, never had collections, this is the only part of my credit score that needs help. Anyone venture to guess how much I need to pay down to get my score back to 700?

 

Thank you again.


I think it is a sliding scale.  While some people think that there are brackets where once you get past a certain percentage the affect on the score has a leap change, I have yet to see any believable evidence of such.  Some people will quote the oft mentioned advice to keep your utilization below 50% or below 30% or below 10% or whatever as if that is some sort of magical limit or bucket.  I do not believe that rubbish.  Just get your total debt down.

 

To improve your score -- go back to the tried and true methods.  It isn't necessarily easy or fast but it does work.  Keeping paying down your debt, the faster the bettter.  Rejoice with every percentage you reduce it by.  Your score will naturally increase.  Start by going after the cards with the highest APR not necessarily the lowest balance.  I know it feels good to pay off the smaller balances first but mathmatically you are best to pay min. on the low interest cards and the max. you can afford on the highest interest cards. Don't be late in paying off any of the cards.  At the very least pay the min. due on everything.

 

The Bank of America card is hurting you the most of the individual cards because the utilization is the highest (83%).  Your score is based on both the utilization of each card plus your overall utilization.  On the flip side of that arguement, the few number of cards that you use and carry a balance on during any given period the higher your score will be.  Generally if you are using less than 50% of your cards your score will be a bit higher.  But I wouldn't worry about that at the moment because it looks like you have quite a bit of work to do to get the CC debt under control.  $43k of debt is nothing to sneeze at and is equal to a year's pay for a lot of people!

 

Secondly, you may be able to get some CLIs.  Perhaps the 2nd Citibank could go from 10200 to 15000 as an example.  This would reduce the utilization percentage a bit.

 

Keep plugging away!

 

AMEX_PlatinumBMOWorldMCCapOnePlatinumMBNA_Platinum+ScotiaMomentum
____$25k_______$20k_______$20k_______$25k_______$25k____
Starting Score: 676 Feb 2008; Current Score: 791 EQ; 824 CA, Dec. 2014; TU 814, Oct. 2014; Goal Score: 800 by end of year Oldest Account reported by EQ: 12 years; EQ AAoA: 5.8 years; EQ Credit Utilization: 2.3%

myFICO is the consumer division of FICO. Since its introduction 20 years ago, the FICO® Score has become a global standard for measuring credit risk in the banking, mortgage, credit card, auto and retail industries. 90 of the top 100 largest U.S. financial institutions use the FICO Score to make consumer credit decisions.

>> About myFICO
FICO Score - The Score that matters
Click to Verify - This site chose VeriSign SSL for secure e-commerce and confidential communications.
Fair Isaac Corporation is a BBB Accredited Financial Service in San Rafael, CA
FOLLOW US Social Media Facebook Twitter Pinterest Google+
}