Utilization record

[ecxpa]

So....we all know keeping out utilization low is a key factor in our credit.  My question is,  do lenders look at the current report  only when they review your application or can and do they look at the report over a period of time.   In other words if you carry a balance for several months on several cards then pay them off how do creditors look at this.  Do they see someone with a zero balance or someone who has been carrying a balance for the last 3-4 months?

[Anonymous]

They just look at the instant snapshot, but the snapshot can tell them a lot.  For example if you have 5 CCs with 95% utilization and the CRAs report that you're only paying the minimum payment as of the last month, it tells a lender a lot about you.

[ecxpa]

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@Anonymous wrote:

They just look at the instant snapshot, but the snapshot can tell them a lot.  For example if you have 5 CCs with 95% utilization and the CRAs report that you're only paying the minimum payment as of the last month, it tells a lender a lot about you.

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Geesh!!!! who would do that!

[SouthJamaica]

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@ecxpa wrote:

So....we all know keeping out utilization low is a key factor in our credit.  My question is,  do lenders look at the current report  only when they review your application or can and do they look at the report over a period of time.   In other words if you carry a balance for several months on several cards then pay them off how do creditors look at this.  Do they see someone with a zero balance or someone who has been carrying a balance for the last 3-4 months?

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You're mixing up 2 concepts.

1. Your credit score.

2. How a loan officer might 'look at' something.

Your utilization as of your last statement cuts is a factor in your credit score. That factor is unrelated to what's happened in previous billing cycles.

As to what a loan officer would look at, or how the officer would consider something, is a completely subjective thing.

[ecxpa]

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@SouthJamaica wrote:

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You're mixing up 2 concepts.

1. Your credit score.

2. How a loan officer might 'look at' something.

Your utilization as of your last statement cuts is a factor in your credit score. That factor is unrelated to what's happened in previous billing cycles.

As to what a loan officer would look at, or how the officer would consider something, is a completely subjective thing.

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I'm not mixing up 2 concepts; my question is basically does a loan officer or credit card company look at the current utilization or do they go back and look at the credit report for preceeding months

[Aduke1122]

Utilization has NO MEMORY, therefore yes you can carry a balance and pay it off prior to apping for a new card and they will only see what is there right when they pull the report , they can see your payment amount history and your largest balance reported but your UTi does not stay  on file , it can change everytime your statements close

[ecxpa]

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@Aduke1122 wrote:

Utilization has NO MEMORY, therefore yes you can carry a balance and pay it off prior to apping for a new card and they will only see what is there right when they pull the report , they can see your payment amount history and your largest balance reported but your UTi does not stay  on file , it can change everytime your statements close

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Thankx....this is the information I was looking for

[HeavenOhio]

The reports themselves have the structure to show how you've addressed payments for the past 24 months (EQ and EX) or 30 months (TU). But that information is inconsistently reported from card to card, and a lender would have a tough time painting an accurate picture from it.

If a lender happnens to have pulled your reports over time, though, such as through soft-pulls for promo offers, it might get a pretty decent picture.

I woudn't get too concerned, though. Making sure you're in good shape right now is what's most important.

[Aduke1122]

I agree ☝️

[Revelate]

In general, if it's on the report, assume the lender looks at it.

Doing anything else is almost assuredly wrong: hope for the best, plan for the worst also applies.  

Will state when I look at someone's report (not that I do that for a living but occasionally I see one), I absolutely do look at the trend data as while I might not get a full picture, I may get something useful.  I would be stunned and amazed if lenders didn't feel the same way.