topic Re: Monthly utilization in Understanding FICO® Scoring

Monthly utilization

Anonymous — Wed, 18 Jan 2017 15:42:14 GMT

So my question is this......3 of my cards report on the 10th of every month.......and one card reports on the 25th......

After my early cards report....does my scor3 still count the balance of the (25th) card until it reports again, or does the balance reset every month till it reports?

Re: Monthly utilization

Anonymous — Wed, 18 Jan 2017 17:29:02 GMT

Short answer: Any credit scoring algorithm will still count the balance of the (25th) card until it reports again.

But the answer to that very narrow question follows from a much more general principle, and it's the general principle that's important. And that is:

A credit score is generated from by pulling all the data from a particular credit report at a specific instant in time.

Therefore each CC balance that is fed into the scoring algorithm will be based on whatever the last update the issuer gave to that credit bureau as of that moment in time.

When you really understand that general principle, then your much narrower question gets answered, as well as many other variations on it.

Hope that helps!

Re: Monthly utilization

Anonymous — Wed, 18 Jan 2017 17:37:11 GMT

CGID is spot on above.

This topic can be an issue if a creditor decides not to report one month for whatever reason. I've seen it happen with several of my accounts over the years. Sometimes they just skip a month of reporting. When that happens, your moment in time score(s) when pulled will reflect their last reporting, which may have been 7-8 weeks earlier. When something dramatically improves, this can be frustrating as you want the new and improved info reported ASAP (such as a high credit card balance that's dramatically reduced).

Re: Monthly utilization

Anonymous — Wed, 18 Jan 2017 17:50:33 GMT

Thanks. Answered.