New Contributor
Posts: 107
Registered: ‎12-23-2012
Re: Utilization Theories

I am not clear about the exact conclusions of previsous discussion threads.


We donot have cause- effect relationship between utilization and drop in credit score other than general known trend that higher the utilization - higher are chances of reduction in score over long term - say typically 6 to 12 month period.


Average utilization which total of charges on all credit card divided by total available credit on credit cards.


Does it matter if my overall average utilization is less than 10% but for a single card with 5% cash back, that particular card in that particular quarter has utilization is say 50% to get full benefit of rewards?


Does creditor has access to data on whether balance is paid in full or partial? That can reveal bigger picture?