Question about Util

[mclaughh]

I always thought I understood utilization but I'm not sure what the deal is here...I just graduated from school and only have one credit card...a Visa Signature with a 900.00 limit. My last statement showed a balance of 66.18. I checked my TU and EQ score 2 weeks after statement closed and both say my util is 16%. Seems to me it should be

66.18/900 =  7.35%. My balance the month before was only 40.17 so that would be even lower. Where are they getting 16%?

[AndySoCal]

Do you have any other accounts reporting as revolving or with a loan type of credit card?

[mclaughh]

No I don't but I just found the answer doing a search and it was actually one of your posts from 2009 haha. Thanks man!! I have a Visa Signature card and apparently they don't report credit limits...wish I had known that. I had a high balance of 408 from a few years back which is apparently what they are using as my limit since it's not reported. 66/408 = 16%. Looks like I need to get a new card...

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AndySoCal

11-12-2009 06:45 PM

The bureaus have two fields high balance and credit limit. High balance is just the highest balance ever reported on the account. High balance can affect your utilization in some scenerios. For example if you have a credit card with the following data a balance of $200 High balance of $500 and a credit limit of $1000. If the high balance and the balance are only reported you utilization is 40% that card. If the balance and the credit limit is reported you utilization is 20% on that card.  It is something that should be corrected but I cannot see a big difference in the utilization calc on that card either way."

[mclaughh]

The bureaus have two fields high balance and credit limit. High balance is just the highest balance ever reported on the account. High balance can affect your utilization in some scenerios. For example if you have a credit card with the following data a balance of $200 High balance of $500 and a credit limit of $1000. If the high balance and the balance are only reported you utilization is 40% that card. If the balance and the credit limit is reported you utilization is 20% on that card.  It is something that should be corrected but I cannot see a big difference in the utilization calc on that card either way."