topic Re: What is the abbreviation for "Utilization"? in General Credit Topics

What is the abbreviation for "Utilization"?

BBYGRL — Thu, 12 Aug 2010 00:07:12 GMT

I'm having a brief brain fart...What is the abbreviation for "Utilization"? I couldn't find it on the Common Abbreviations link. Thanks!

Re: What is the abbreviation for "Utilization"?

fused — Thu, 12 Aug 2010 00:19:52 GMT

util

Re: What is the abbreviation for "Utilization"?

RobertEG — Thu, 12 Aug 2010 06:45:15 GMT

Really, a very good question.

FICO has a major category of credit scoring, called "utilization of credit." It is a generic term, often applied to indiv accounts.

That is 30% of your credit score.

But it then quickly breaks down into many sub-factors that are also called "utilization." under that 30% FICO weighting umbrellla.

I list those terms, in my perceived level FICO significance:

1. % util of overall revolving credit. CLEARLY the most significant util factor.

2. % util of each indiv revolving credit account.

3. Number of revolving accounts showing reproting period balances of more than $0 at the end of each monthly reporting cycle(low significance)

4. % util on installment loans (very,very low significance.)

Re: What is the abbreviation for "Utilization"?

BBYGRL — Thu, 12 Aug 2010 19:54:10 GMT

@RobertEG wrote:
Really, a very good question.
FICO has a major category of credit scoring, called "utilization of credit." It is a generic term, often applied to indiv accounts.
That is 30% of your credit score.
But it then quickly breaks down into many sub-factors that are also called "utilization." under that 30% FICO weighting umbrellla.
I list those terms, in my perceived level FICO significance:

1. % util of overall revolving credit. CLEARLY the most significant util factor.
2. % util of each indiv revolving credit account.
3. Number of revolving accounts showing reproting period balances of more than $0 at the end of each monthly reporting cycle(low significance)
4. % util on installment loans (very,very low significance.)

LOL Thanks Robert. I needed the abbreviation and you graciously gave me a thorough definition.

Re: What is the abbreviation for "Utilization"?

BBYGRL — Thu, 12 Aug 2010 19:54:47 GMT

Thank you FUSED!