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Utilization Question

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Utilization Question

Hello Everyone!!! I have a question about utilization... Is utilization based on the balance after a statement has been cut or is it considered the activity before a statement is cut? I have been 4 months into all this and suddenly now doubting myself on what I've been thinking all this time Smiley Surprised - sorry if this sounds dumb...!?! Smiley Embarassed LOL!!! Thank You in advance with your replies!!! Smiley Happy

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Valued Contributor

Re: Utilization Question


@LVKalani wrote:

Hello Everyone!!! I have a question about utilization... Is utilization based on the balance after a statement has been cut or is it considered the activity before a statement is cut? I have been 4 months into all this and suddenly now doubting myself on what I've been thinking all this time Smiley Surprised - sorry if this sounds dumb...!?! Smiley Embarassed LOL!!! Thank You in advance with your replies!!! Smiley Happy


It's based on what the lenders report to the CB's

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Re: Utilization Question


@-Wade- wrote:

@LVKalani wrote:

Hello Everyone!!! I have a question about utilization... Is utilization based on the balance after a statement has been cut or is it considered the activity before a statement is cut? I have been 4 months into all this and suddenly now doubting myself on what I've been thinking all this time Smiley Surprised - sorry if this sounds dumb...!?! Smiley Embarassed LOL!!! Thank You in advance with your replies!!! Smiley Happy


It's based on what the lenders report to the CB's


Which is basically based on a balance after a statement has been cut, am I correct...? Smiley Indifferent

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Re: Utilization Question


@LVKalani wrote:

@-Wade- wrote:

@LVKalani wrote:

Hello Everyone!!! I have a question about utilization... Is utilization based on the balance after a statement has been cut or is it considered the activity before a statement is cut? I have been 4 months into all this and suddenly now doubting myself on what I've been thinking all this time Smiley Surprised - sorry if this sounds dumb...!?! Smiley Embarassed LOL!!! Thank You in advance with your replies!!! Smiley Happy


It's based on what the lenders report to the CB's


Which is basically based on a balance after a statement has been cut, am I correct...? Smiley Indifferent


most of the time but not always................US Bank reports and a few other's at the end of each month while the statements cuts during the month.

 

 

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Re: Utilization Question

Or maybe I should have worded it, as what the balance is at the time when the lender reports it to the CB...

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Re: Utilization Question

It is the balance after the statement, your utilization is the balance that reports to the CB. So e.g

 

Card 1: 500/1000 reports like this

Card 2: 0/1000

card 3: 600/1000

 

Total 1100/3000 so your total utilization would be 36% is what a computer would see if you applied. Utilization is based on all cards combined but maxing out a card for too long is not very good to be seen by seperate lenders because then they might chase the balance down as it gets paid and possibly close it for high util on that 1 card.

 

Hope i answered your question.

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Re: Utilization Question


@Skye12329 wrote:

It is the balance after the statement, your utilization is the balance that reports to the CB. So e.g

 

Card 1: 500/1000 reports like this

Card 2: 0/1000

card 3: 600/1000

 

Total 1100/3000 so your total utilization would be 36% is what a computer would see if you applied. Utilization is based on all cards combined but maxing out a card for too long is not very good to be seen by seperate lenders because then they might chase the balance down as it gets paid and possibly close it for high util on that 1 card.

 

Hope i answered your question.


That is not always the case. Some banks report at the end of each month no matter when the statement cuts

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Re: Utilization Question


@LVKalani wrote:

Or maybe I should have worded it, as what the balance is at the time when the lender reports it to the CB...


That is correct

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Re: Utilization Question

Sorry again, I guess what I'm trying to get to, is a lender won't report a balance + whatevery activity is going on during the billing cycle...

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Re: Utilization Question


@LVKalani wrote:

Sorry again, I guess what I'm trying to get to, is a lender won't report a balance + whatevery activity is going on during the billing cycle...


you will need to know when each lender reports to the CB and PIF a few days before that

"Garden Club Member " Old user name newportguy*** Current Score: myFico EQ - 830 (07/16/2015) Discover TU Fico - 833 (09/03/2016) EX Fico - 839 ( 09/01/2016 ) ******* Amex - BCP 11.5K * Discover - IT 43.5 K * U.S. Bank Cash + Visa Signature 15.3 K * PenFed - Cash Rewards 15K *PenFed Power Cash 19K ** Amex - GDSM 10K ******FICO 800 Club Member ******* EQ 830 *** TU 833 *** EX 839 ***
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