topic Re: Utilization record in Credit Cards

Utilization record

ecxpa — Sat, 29 Apr 2017 15:51:03 GMT

So....we all know keeping out utilization low is a key factor in our credit. My question is, do lenders look at the current report only when they review your application or can and do they look at the report over a period of time. In other words if you carry a balance for several months on several cards then pay them off how do creditors look at this. Do they see someone with a zero balance or someone who has been carrying a balance for the last 3-4 months?

Re: Utilization record

Anonymous — Sat, 29 Apr 2017 15:53:23 GMT

They just look at the instant snapshot, but the snapshot can tell them a lot. For example if you have 5 CCs with 95% utilization and the CRAs report that you're only paying the minimum payment as of the last month, it tells a lender a lot about you.

Re: Utilization record

ecxpa — Sat, 29 Apr 2017 15:57:04 GMT

@Anonymous wrote:
They just look at the instant snapshot, but the snapshot can tell them a lot. For example if you have 5 CCs with 95% utilization and the CRAs report that you're only paying the minimum payment as of the last month, it tells a lender a lot about you.

Geesh!!!! who would do that!

Re: Utilization record

SouthJamaica — Sat, 29 Apr 2017 16:37:03 GMT

@ecxpa wrote:
So....we all know keeping out utilization low is a key factor in our credit. My question is, do lenders look at the current report only when they review your application or can and do they look at the report over a period of time. In other words if you carry a balance for several months on several cards then pay them off how do creditors look at this. Do they see someone with a zero balance or someone who has been carrying a balance for the last 3-4 months?

You're mixing up 2 concepts.

1. Your credit score.

2. How a loan officer might 'look at' something.

Your utilization as of your last statement cuts is a factor in your credit score. That factor is unrelated to what's happened in previous billing cycles.

As to what a loan officer would look at, or how the officer would consider something, is a completely subjective thing.

Re: Utilization record

ecxpa — Sat, 29 Apr 2017 17:11:01 GMT

@SouthJamaica wrote:
You're mixing up 2 concepts.

1. Your credit score.

2. How a loan officer might 'look at' something.

Your utilization as of your last statement cuts is a factor in your credit score. That factor is unrelated to what's happened in previous billing cycles.

As to what a loan officer would look at, or how the officer would consider something, is a completely subjective thing.

I'm not mixing up 2 concepts; my question is basically does a loan officer or credit card company look at the current utilization or do they go back and look at the credit report for preceeding months

Re: Utilization record

Aduke1122 — Sat, 29 Apr 2017 17:32:03 GMT

Utilization has NO MEMORY, therefore yes you can carry a balance and pay it off prior to apping for a new card and they will only see what is there right when they pull the report , they can see your payment amount history and your largest balance reported but your UTi does not stay on file , it can change everytime your statements close

Re: Utilization record

ecxpa — Sat, 29 Apr 2017 17:33:51 GMT

@Aduke1122 wrote:
Utilization has NO MEMORY, therefore yes you can carry a balance and pay it off prior to apping for a new card and they will only see what is there right when they pull the report , they can see your payment amount history and your largest balance reported but your UTi does not stay on file , it can change everytime your statements close

Thankx....this is the information I was looking for

Re: Utilization record

HeavenOhio — Sat, 29 Apr 2017 17:43:13 GMT

The reports themselves have the structure to show how you've addressed payments for the past 24 months (EQ and EX) or 30 months (TU). But that information is inconsistently reported from card to card, and a lender would have a tough time painting an accurate picture from it.

If a lender happnens to have pulled your reports over time, though, such as through soft-pulls for promo offers, it might get a pretty decent picture.

I woudn't get too concerned, though. Making sure you're in good shape right now is what's most important.

Re: Utilization record

Aduke1122 — Sat, 29 Apr 2017 18:15:00 GMT

I agree ☝️

Re: Utilization record

Revelate — Sat, 29 Apr 2017 21:28:08 GMT

In general, if it's on the report, assume the lender looks at it.

Doing anything else is almost assuredly wrong: hope for the best, plan for the worst also applies.

Will state when I look at someone's report (not that I do that for a living but occasionally I see one), I absolutely do look at the trend data as while I might not get a full picture, I may get something useful. I would be stunned and amazed if lenders didn't feel the same way.

Re: Utilization record

andydallas1 — Sun, 30 Apr 2017 00:32:53 GMT

Years ago I had applied for a cc, the person that called me ask why my utilization had gone up on my other cards for the past several months (I was rehabbing a rental property then would refinance, he understood and approved). I always wondered how he knew that, since I did not have a relationship with that bank.