topic Re: Utilization ? in Credit Cards

Utilization ?

kjm79 — Fri, 11 Mar 2011 00:02:37 GMT

Hello everyone.

When factoring your uti, are closed cc's that carry balances factored into the formula? I have a cc that tried to rise my APR to 30% and I decided to close the account (which after I closed it, my husband was deployed and I got the APR reduced to 6% grrrrrrrrr!). It still has a $1,700 balance and is reporting positively. It lists the balance but not the cl. When I calculate my uti %'s I do not come up with what myFico says they are (off by almost 10%). So I was wondering if myFico is including this balance int my uti % but not inlcuding the limit on the closed cc???? If I factor in the balances on my closed cc AND my Macy's Store card (which I though wasn't factored into uti %'s) I'm off by about a % or two from myFico. Thanks in advance for any info!

Re: Utilization ?

Walt_K — Fri, 11 Mar 2011 01:16:16 GMT

@kjm79 wrote:
Hello everyone.

When factoring your uti, are closed cc's that carry balances factored into the formula? I have a cc that tried to rise my APR to 30% and I decided to close the account (which after I closed it, my husband was deployed and I got the APR reduced to 6% grrrrrrrrr!). It still has a $1,700 balance and is reporting positively. It lists the balance but not the cl. When I calculate my uti %'s I do not come up with what myFico says they are (off by almost 10%). So I was wondering if myFico is including this balance int my uti % but not inlcuding the limit on the closed cc???? If I factor in the balances on my closed cc AND my Macy's Store card (which I though wasn't factored into uti %'s) I'm off by about a % or two from myFico. Thanks in advance for any info!

I believe if it is closed and not reporting a credit limit, then it doesn't count. If the credit limit is reported, then it counts so long as there is a balance. Once you pay off the balance, even if it is still reporting a credit limit, that limit will not be factored into your utilization.

ETA: Check out the "tidbits" section http://ficoforums.myfico.com/t5/Credit-Cards/Closing-Credit-Cards/td-p/347190

Re: Utilization ?

kjm79 — Fri, 11 Mar 2011 03:05:04 GMT

Thank you for the response and the info!