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Is Utilization by card or aggregate?

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Anonymous
Not applicable

Is Utilization by card or aggregate?

Sorry for the newb question but couldnt find answer in a search.

 

Does FICO score reflect the overall utilzation, or look at each card?

 

I ask because i have about $7k in overall CL and want to make a large purchase (to be paid off within 6 mo). Currently have roughly 0 balances across all cards. I was thinking of $950 on a card with $1k CL as it has best terms, but that will close to max it out. So my aggregate Utlization will be under 15%, but will it matter if one of my cards is at 95%?

 

I could put it the card with $4K CL but will end up paying more interest.

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Anonymous
Not applicable

Re: Is Utilization by card or aggregate?

My understanding was that it looks at both, individually and overall.

Message 2 of 3
Revelate
Moderator Emeritus

Re: Is Utilization by card or aggregate?


@Anonymous wrote:

Sorry for the newb question but couldnt find answer in a search.

 

Does FICO score reflect the overall utilzation, or look at each card?

 

I ask because i have about $7k in overall CL and want to make a large purchase (to be paid off within 6 mo). Currently have roughly 0 balances across all cards. I was thinking of $950 on a card with $1k CL as it has best terms, but that will close to max it out. So my aggregate Utlization will be under 15%, but will it matter if one of my cards is at 95%?

 

I could put it the card with $4K CL but will end up paying more interest.


Both.

 

The big thing is revolving utilization, which is aggregate.  A much more minor issue appears to be balance per tradeline, maxing out a card isn't a good thing for FICO purposes.

 

Anyway, unless you're going to be applying something in the near future before you can get that balance paid down, *absolutely* do what makes the most financial sense and put as much as possible on the card with the best terms.  FICO doesn't have any memory of prior reported balances, or at least doesn't use them in the algorithm to the best of everyone's knowledge.




        
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