topic Re: Utilization question in General Credit Topics

Utilization question

creditchild — Fri, 17 Dec 2010 19:02:08 GMT

how can i tell what my total utilization is?

i always thought it was done on each individual account.

i just got an alert that my score went down because my balance

on two of my accts increased. i have a walmart card which my limit

is $400 and i only used $65 and a barclays. my limit is $1800 and i

only used $328 so can someone tell me how to calculate my total

utilization?

Thanks

Re: Utilization question

ArisGreek — Fri, 17 Dec 2010 19:19:28 GMT

Walmart: $65 / $400 = 16% utilization

Barclays $328 / 2200 = 18% utilization

Total debt: $393 / Total CL $1800 $2200 = 17.9% utilization

Re: Utilization question

fused — Fri, 17 Dec 2010 19:10:59 GMT

here is a thread that should help you.

Closing CCs

Re: Utilization question

Anonymous — Fri, 17 Dec 2010 19:14:10 GMT

Your total UTIL is based on total CL which is 2200.

You have used 65 respectively on one and 328 respectively on the other which gives you a total of 393.

Which is approximately 18% (little less then) total UTIL used.

Take the total UTIL and multiply by .xx to obtain your UTIL.

Example 10% UTIL on 100 CL would be 100 multiply by .10 = 10 dollars

In your case 18% UTIL on total CL 2200 multiply by .18 = 396 dollars

Just to clarify your UTIL is based on individual and total.

Re: Utilization question

RobertEG — Sat, 18 Dec 2010 02:38:32 GMT

FICO has stated that it scores revolving % util by weighting overall % util at approx half, and the combined effects of indiv card utils forming the other 50%.

As a a rough example, assume you have 5 cards. Around 50% of wieghting would depend upon your overall util, and each card would be weighed at approx 10% overall impact. Rough approximation, but it makes the comparison of relative weightings.

Re: Utilization question

fused — Sat, 18 Dec 2010 18:30:30 GMT

@RobertEG wrote:

FICO has stated that it scores revolving % util by weighting overall % util at approx half, and the combined effects of indiv card utils forming the other 50%.
As a a rough example, assume you have 5 cards. Around 50% of wieghting would depend upon your overall util, and each card would be weighed at approx 10% overall impact. Rough approximation, but it makes the comparison of relative weightings.

Do you have a link where FICO states that?

Re: Utilization question

MarineVietVet — Mon, 20 Dec 2010 00:25:46 GMT

@fused wrote:

@RobertEG wrote:

FICO has stated that it scores revolving % util by weighting overall % util at approx half, and the combined effects of indiv card utils forming the other 50%.
As a a rough example, assume you have 5 cards. Around 50% of wieghting would depend upon your overall util, and each card would be weighed at approx 10% overall impact. Rough approximation, but it makes the comparison of relative weightings.
Do you have a link where FICO states that?:smileyhappy:

I'm wondering the same thing. You've said this on more than one ocassion Robert but I have searched and searched this site for confirmation of this and have yet to find anything. I'm not saying you are wrong but I'd like to read that myself.

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: Utilization question

RobertEG — Wed, 22 Dec 2010 05:08:04 GMT

Sure, I will dig up the specific Fair Isaac-sponsored webinar discussion, but it was specifically stated in one of the three "FICO Webinars" on credit information that are included under the major tab "Education" in the top banner of this site, and then going to the Educational Videos sub- tab, which then summarize the issues/topics addressed in each. Overall vs indiv util was a specific topic addressed by FICO staff, with the statement that the impact of overall % util and the combined affect of individ card utilizations carry approximately equal weight in FICO scoring.

Re: Utilization question

Lel — Wed, 22 Dec 2010 07:16:32 GMT

Well, looks I picked the wrong webinar to listen to.

I just listened to the "Credit in today's climate" webinar. It doesn't specifically discuss the weighting of individual vs cumulative revolving credit utilization. But towards the end (of course) of the session, there is some discussion about how to pay down credit cards to achieve the best FICO score. One of the Fair Isaac discussants recommended paying down the card with the highest balance relative to its credit limit - that is, addressing the individual card's utilization. He then suggested that it would be ideal to bring down the utilization of all one's cards, as opposed to leaving one maxed out

So, while this doesn't provide any specifics about whether individual card utilization is given equivalent weight to cumulative utilization, it does support the notion that the FICO score does take into account both types of utilization. But I think we all knew that already.

Maybe I'll listen to the "Holiday best practices webinar" on another day - unless someone else feels like summarizing the relevant information from that discussion.

Re: Utilization question

MarineVietVet — Wed, 22 Dec 2010 15:52:59 GMT

@RobertEG wrote:
Sure, I will dig up the specific Fair Isaac-sponsored webinar discussion, but it was specifically stated in one of the three "FICO Webinars" on credit information that are included under the major tab "Education" in the top banner of this site, and then going to the Educational Videos sub- tab, which then summarize the issues/topics addressed in each. Overall vs indiv util was a specific topic addressed by FICO staff, with the statement that the impact of overall % util and the combined affect of individ card utilizations carry approximately equal weight in FICO scoring.

Thanks Robert. I will listen to them.

Re: Utilization question

MarineVietVet — Thu, 23 Dec 2010 02:14:19 GMT

@RobertEG wrote:
FICO has stated that it scores revolving % util by weighting overall % util at approx half, and the combined effects of indiv card utils forming the other 50%.
As a a rough example, assume you have 5 cards. Around 50% of wieghting would depend upon your overall util, and each card would be weighed at approx 10% overall impact. Rough approximation, but it makes the comparison of relative weightings.

Hi Robert.

I found the webinar you were talking about. It is titled Signs of Looming Credit Problems and is dated April 11, 2008. Barry does say that overall and individual card utilization is looked at equally. However he also told me that he wouldn't go as far to say if you have 5 cards each will be 10%, etc.

Re: Utilization question

vanillabean — Thu, 23 Dec 2010 03:20:42 GMT

If the five cards are identical, I'd certainly assume they get 10% each, no?

Re: Utilization question

Anonymous — Thu, 23 Dec 2010 23:03:35 GMT

I think it's fair to say that we know that overall and individual utilization are looked at equally.

Beyond that we would be making assumptions that are not verified. I think it's fair to say that we certainly know enough to manage our accounts appropriately to keep the FICO gods smiling as far as our utilization goes.