Question about Utilization

[tylaw13]

i just wanted to clear something up. i know uti plays a big role in your credit score but if you have one month with like 90% uti and the card reports so your score is affected but then say the next month you bring it down to 5% and score goes up then people pulling your credit cant see the uti for the previouse month correct? im not sure if i explained that well enough.

[journey258]

The way I understand, last month's utilization won't effect you. Your credit worthiness is based on the current "snapshot" in time.

[FrugalRican]

It's just a snapshot. It takes a picture of whatever it is at that month. It doesn't account for past utilizations.

[Crashem]

+1.  But to clarify, it is visible on credit report if they are looking for it.  However, the FICO score is blind.

[Revelate]

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@Crashem wrote:

+1.  But to clarify, it is visible on credit report if they are looking for it.  However, the FICO score is blind.

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+ 2; however, this is also potentially a non-trivial factor in demonstrating responsible use of the credit you have currently from an underwriting perspective too.  I suspect it's nothing but goodness to show you can absolutely handle the amount of credit extended to you, and even if it comes up on a recon of a denial, it's trivial to explain away.  

TLDR: There's no downside, and there may be upside.

[tylaw13]

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@Revelate wrote:

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@Crashem wrote:

+1.  But to clarify, it is visible on credit report if they are looking for it.  However, the FICO score is blind.

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+ 2; however, this is also potentially a non-trivial factor in demonstrating responsible use of the credit you have currently from an underwriting perspective too.  I suspect it's nothing but goodness to show you can absolutely handle the amount of credit extended to you, and even if it comes up on a recon of a denial, it's trivial to explain away.  

TLDR: There's no downside, and there may be upside.

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Cool thanks guys! i kinda thought thats how it was because ive been watching my scores go up and down from month to month. thanks for the clarification!