topic Re: Utilization question in Rebuilding Your Credit

Utilization question

Anonymous — Fri, 04 Jan 2013 02:32:04 GMT

Not sure if this should be in the CC forum if it is I'm sorry.

Not 100% sure how utilization works. I have 3 cards with a total credit of 2600. All cards are paid off except for one that is $300 spent out of $500. Does utilization go for all cards as a whole or individual?

Re: Utilization question

pizzadude — Fri, 04 Jan 2013 02:36:10 GMT

@Anonymous wrote:
Not sure if this should be in the CC forum if it is I'm sorry.

Not 100% sure how utilization works. I have 3 cards with a total credit of 2600. All cards are paid off except for one that is $300 spent out of $500. Does utilization go for all cards as a whole or individual?

Both individual card and total card balances & limits are scored as part of FICO revolving credit utilization.

Re: Utilization question

Vtso4 — Fri, 04 Jan 2013 02:40:47 GMT

Utilization is caculated by the sum of all of your credit card limits divided by the sum of all your credit card balances. So in your case:

300/2600=.11 or a 11 percent utilization rate. Usually the credit bureaus like to see anywhere between a 1 to 9% utilization rate.

Re: Utilization question

Anonymous — Fri, 04 Jan 2013 02:52:00 GMT

Thanks guys!