topic Re: Understanding Utilization in Understanding FICO® Scoring

Understanding Utilization

Anonymous — Fri, 21 Jan 2011 21:29:52 GMT

I was wondering how utilization works...

Is utilization figured monthly according to how much you charge in a month, or is it figured by the balance you carry month to month? Just curious...

Thanks

Re: Understanding Utilization

MarineVietVet — Fri, 21 Jan 2011 21:45:24 GMT

@Anonymous wrote:
I was wondering how utilization works...

Is utilization figured monthly according to how much you charge in a month, or is it figured by the balance you carry month to month? Just curious...

Thanks

For most cards the utilization is calculated by your balance that is reported on your monthly statement. That's why it's so important to keep the balance low right before the statement posts.

There are exceptions for No Preset Spending Limits Cards.

From a BK years ago to:
EX - 9/09 pulled by lender 802, EQ - 10/10-813, TU - 10/10-774

"Some people spend an entire lifetime wondering if they've made a difference. The Marines don't have that problem".

Re: Understanding Utilization

Anonymous — Fri, 21 Jan 2011 21:47:00 GMT

Thanks marine!

One more question, how does one know when a statement will post to the CRA?

Re: Understanding Utilization

MarineVietVet — Fri, 21 Jan 2011 21:50:27 GMT

@Anonymous wrote:
Thanks marine!

One more question, how does one know when a statement will post to the CRA?

There is no one answer. Again most cards report to the CRA's on the statement date or within a day or so but others report on the last business day of the month. You'll need to contact your issuer(s) and find out for sure.

Re: Understanding Utilization

Anonymous — Fri, 21 Jan 2011 22:44:14 GMT

Thank you MarineViet - you've been a great help!