Question about Utilization

[teo77777]

       Up till now I've only had 1 card with a 300.00 limit. I charge no more that 10% on it each month and PIF. Now I have 2 more cards, 500.00 and 600.00, and an AU  on a card with 15,000. Does my UTIL now combine ALL credit limits? , i.e. , if I charge 400.00 on the 500.00 card and pif after it reports will I have a 400/500   80% util, or a

400/16,400  2.4% util??

[Gunnar419]

Your util does combine ALL your cards.

However, each individual card's own util is counted in scoring. So if you had low util across all cards but still had one or two cards reporting 80% util, you'd take a score hit for the cards that were maxed out.

The number of cards reporting balances also counts. Your score will be better with one card reporting a balance than it will be if all four report balances, even if they're only reporting a few dollars.

Hope that helps.

[user5387]

FICO scoring looks both at overall utilization and utilization per card.

I would avoid maxing individual cards.

[teo77777]

---

@Gunnar419 wrote:

Your util does combine ALL your cards.

However, each individual card's own util is counted in scoring. So if you had low util across all cards but still had one or two cards reporting 80% util, you'd take a score hit for the cards that were maxed out.

The number of cards reporting balances also counts. Your score will be better with one card reporting a balance than it will be if all four report balances, even if they're only reporting a few dollars.

Hope that helps.

---

        No, that helps a ton. So to get the most rewards from the card I could put 400.00 on it, pay it down to around 30 bucks BEFORE it closes, let it report the 30.00, then PIF, then leave it at zero and use a diff card next month. That sound right?

[teo77777]

---

@user5387 wrote:

FICO scoring looks both at overall utilization and utilization per card.

I would avoid maxing individual cards.

---

  Will do...Thanks!