Utilization Question

[Anonymous]

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  - sorry if this sounds dumb...!?!  LOL!!! Thank You in advance with your replies!!! 

[-Wade-]

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@Anonymous 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  - sorry if this sounds dumb...!?!  LOL!!! Thank You in advance with your replies!!! 

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

[Anonymous]

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@-Wade- wrote:

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@Anonymous 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  - sorry if this sounds dumb...!?!  LOL!!! Thank You in advance with your replies!!! 

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

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

[-Wade-]

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@Anonymous wrote:

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@-Wade- wrote:

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@Anonymous 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  - sorry if this sounds dumb...!?!  LOL!!! Thank You in advance with your replies!!! 

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

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

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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.

[Anonymous]

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

[Skye12329]

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.

[-Wade-]

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@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.

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

[-Wade-]

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@Anonymous wrote:

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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That is correct

[Anonymous]

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...

[-Wade-]

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@Anonymous 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...

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