topic Re: Apping...Question about UTIL in Credit Cards

Apping...Question about UTIL

heicos40t5 — Tue, 20 Mar 2012 01:11:06 GMT

I had a question about utilization when appyling for a credit card:

Here is a little background:

CapOne - 750

Discover - 750

Amex Gold - NPSL

When my statements cut, I always try to get them between 1 and 10% utilization on both discover and capital one. Since my lines are low, i sometimes run up the balance to higher than 80%, then pay back down before the statement cuts.

Here goes the question -

When you app for a new card, does the creditor see the current util (the day you apped) or the util that reported to the bureaus (normally the last statement balance)?

Thanks for the advice!

Re: Apping...Question about UTIL

Anonymous — Tue, 20 Mar 2012 01:14:10 GMT

They see the last reported balance, which is typically your last statement balance.

Re: Apping...Question about UTIL

bichonmom — Tue, 20 Mar 2012 01:16:14 GMT

@heicos40t5 wrote:
I had a question about utilization when appyling for a credit card:

Here is a little background:

CapOne - 750
Discover - 750
Amex Gold - NPSL

When my statements cut, I always try to get them between 1 and 10% utilization on both discover and capital one. Since my lines are low, i sometimes run up the balance to higher than 80%, then pay back down before the statement cuts.

Here goes the question -

When you app for a new card, does the creditor see the current util (the day you apped) or the util that reported to the bureaus (normally the last statement balance)?

Thanks for the advice!

They see both. They see your statement balance, which counts towards your util. However, your high balance is also reported, but does NOT affect your util. It shows up under the "high balance" section of CR.

Also, for the best FICO, you should only have ONE CC reporting a <9% balance. All other CCs should be paid to zero before the statement cuts. The exception would be for your Amex, since the balance doesn't count towards your util for most of the FICO versions. (TU98 does count it towards your util.)

Re: Apping...Question about UTIL

heicos40t5 — Tue, 20 Mar 2012 01:16:47 GMT

Appreciate the quick response!

Re: Apping...Question about UTIL

pizzadude — Tue, 20 Mar 2012 01:17:39 GMT

@Anonymous wrote:
They see the last reported balance, which is typically your last statement balance.

+1. Almost all creditors send updates to the CRAs once a month, usually on the statement date. The CRAs take a few days to process so you can usually see updated information on your CRs 2 or 3 days later.

Re: Apping...Question about UTIL

LS2982 — Tue, 20 Mar 2012 01:20:00 GMT

@heicos40t5 wrote:
I had a question about utilization when appyling for a credit card:

Here is a little background:

CapOne - 750
Discover - 750
Amex Gold - NPSL

When my statements cut, I always try to get them between 1 and 10% utilization on both discover and capital one. Since my lines are low, i sometimes run up the balance to higher than 80%, then pay back down before the statement cuts.

Here goes the question -

When you app for a new card, does the creditor see the current util (the day you apped) or the util that reported to the bureaus (normally the last statement balance)?

Thanks for the advice!

Creditors see what is currently reporting on your CR reports.