topic Re: Does Util 'reset' monthly? in Understanding FICO® Scoring

Does Util 'reset' monthly?

sunshine7157 — Wed, 29 Aug 2012 17:29:11 GMT

Hey. Was just wondering if anyone knows for sure that utilization resets every month? I was playing around with my util for the past couple months (going from <5% reported Util to <9% util to 15% util). I took an 8 point hit going from <9% to 15% and am now back to <9% but I haven't gained even one point back? All other variables are the same. I don't see how it's possible that I didn't get my points back if the util supposedly resets every month. It has me seriously considering whether FICO util keeps a running tab? Maybe it averages your util over the course of time? Tracks util 'milestones'? Thoughts anyone?

Re: Does Util 'reset' monthly?

GregB — Wed, 29 Aug 2012 23:30:32 GMT

Utilization is calculated each time a report is run and the score is calculated. There is no monthly. With a bunch of accounts, my utilization probably changes most days.

Your FICO is affected only according to the parameters in the scorecards and most of those have steps. That 8 point step could be the change between one utilization and another but there is also utilization on each card and some types of cards are excluded like NPSL cards.

Is it just one card and did it go back to where it was?

Re: Does Util 'reset' monthly?

Anonymous — Thu, 30 Aug 2012 02:47:08 GMT

Correct, the util is calculated as the credit is pulled. (For that matter the SCORE is calculated as the credit is pulled. It is a snapshot) T

The creditors with report balance and other info to Credit Bureaus typically within several days of statement closing. It is just all matter of timing.

Re: Does Util 'reset' monthly?

sunshine7157 — Mon, 03 Sep 2012 06:37:24 GMT

@GregB wrote:
Utilization is calculated each time a report is run and the score is calculated. There is no monthly. With a bunch of accounts, my utilization probably changes most days.

Your FICO is affected only according to the parameters in the scorecards and most of those have steps. That 8 point step could be the change between one utilization and another but there is also utilization on each card and some types of cards are excluded like NPSL cards.

Is it just one card and did it go back to where it was?

Yes, it was just one card and no it didn't go back to where it was. That's what I'm saying- I lost 8 points going from 9 to 15% util but when I pulled it back to 9% (having completed my "test"), I didn't recover even one of those 8 points. All else reported the same across the board for each of the 3 months used in this test.

Month 1 reported total util at <9% (using 1 card only-all other cards 0 bal) Score: 752.

Month 2 reported total util at 15% (again using that same 1 card- all other cards 0 bal) Score: 744.

Month 3 I paid that one card back down, leaving my total util back under 9% on that same 1 card- all other cards 0 bal. Score: 744
So what I am asking is if the credit scoring system 'remembers' our utilization history & counts it against us for a period of time afterwards each time we hit one of their benchmark util percentages (possibly under the impression that we may becoming 'risks'?

Re: Does Util 'reset' monthly?

llecs — Mon, 03 Sep 2012 17:25:39 GMT

OP, what kind of card was it?

This came from myFICO, right? Which report? If so, were both reports from myFICO?

How much time passed between the report with 9% util and 15% util?

If a FICO report was pulled, was util listed within that report?