Valued Contributor
Posts: 2,300
Registered: ‎07-23-2012
Re: Utilization Theories

nishant1 wrote:

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?

unless said creditor is the creditor is the one reviewing no. 

what is the full beneifit of the rewards though? 

i used the 5% categories on the chase freedom and pif before statement cut and i still reaped the rewards. i havent had a single min payment since i opened the card in july and have gotten about 250 cash back including the 100 bonus sign up. 


text in red- how do you figure? if you pay your balance to reflect one card reporting and only less then 9% util reporting in total your score should rebound. from util deficit anyways. 

Current: Discover Fico 709 3/15 Walmart Fico 743 4/15

Inquiries (24 Months): EQ 6 TU 1 EX 6 | Most Recent: 4/09/2015
Over 12 Months:9

2015 Goals:
Lower Utility
Earn Cash Back

Amex Zync(Unicorn)
Chase Freedom$1500
Discover IT$7,400
Citi DC $10,000
Citizens Mastercard$7,000