@Anonymous wrote:
I've seen some conflicting advice here, and wonder if we could clear it up?When FICO figures the score, does it take into account the utilizaiton on a per card basis... or on a total debt/available credit ratio?For example, let's say.....
- I have one card with a $1000 limit, and $500 on it... that's a 50% util. on that CARD...
- ..and another with a $1000 limit and $750 on it.... that's a 75% util on that CARD....
- AND I have 2 additional cards, one with a $1000 limit, but no balance.... and one with a $2000 limit and no balance = 0% Utilization on those CARDS
So how does FICO figure my utilization score?
When I was trying to work the numbers, I saw only two straight percentage options:....Average Utilization: Average % utilization per card: 50% + 75% divided by 4 (total # of cards) = utilization of 31.25%
Don't use this one --the math won't work. It's not weighting the different CL's.
Overall util = sum of all balances outstanding / sum of all credit limits
Individual util = balance outstanding / credit limit (on individual card)
So your overall util is ($500 + $750 + $0 + $0) / ($1000 + $1000 + $1000 = $2000) = $1250 / $5000 = 25%.
However, if you are on a train headed westward at 60 mph, and I am on a train headed eastward at 45 mph...Takes ya back, doesn't it?
*LOL*. Oh don't start me on word problems. 
I figure I should probably just stop trying to figure it. I know they say my utilization is 4% and I can't figure out how they get there. I think I just need to be glad they say my util is 4% . But (always a but) there's this nagging feeling that my one card that is at 85% utilization is hurting me, keeping me just below 700. Hmmmmmmmmmm.
Sovi