utilization

[Anonymous]

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SpecFile wrote:

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sleigh17 wrote:

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SpecFile wrote:

All revolving credit would be my assumption.  You can always calculate each individual CCs util but your score is based off total util of all CCs.

Hope this helps!

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SpecFile,

Since most store cards are considered charge accounts and not revolving credit, are they actually included in your util factor?

Sleigh17

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Hmmm.  Now that you put it that way I don't see how they could.  If you have to PIF each month how would they be able to determine util. on a charge card?  I suppose they wouldn't include charge cards but that may not be accurate. 

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Actually, they are charge accounts and not charge cards (like AMEX Green, for example). I have a Macy's and a Target Redcard. Both are listed on my CR as "charge accounts", but I can make monthly payments unless of course I choose to PIF. I am unclear if they are included because of the monthly payments aspect or not included because they are considered a different animal? I'm so confused...more medication!LOL

[Anonymous]

Even though the Target and store cards are listed as 'charge account' the account type is usually revolving so it is factored into uti.

[Anonymous]

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Brammy wrote:

Be aware that FICO will take into account utilization on individual cards as well.  A 90% maxed out card cancost you as many points as a collection

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Good morning Brammy,

What does the following quote from MyFICO mean?

"This credit usage ratio is one of the most important factors to your FICO score, so you should work on paying down your balances. Your FICO score looks at the ratio of revolving debt, but not in which accounts the debt resides. Therefore, consolidating or moving your debt from one account to another will usually not help your FICO score since the same total amount is owed."

I always thought because of that statement that FICO did not look at individual accounts for util, but at the whole. Am I reading it wrong? Inquiring minds want to know! LOL

Sleigh17

[Anonymous]

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Brammy wrote:

Even though the Target and store cards are listed as 'charge account' the account type is usually revolving so it is factored into uti.

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That's good to know. My store cards are at about 30%. Better get busy and send some money.

[Anonymous]

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sleigh17 wrote:

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Brammy wrote:

Be aware that FICO will take into account utilization on individual cards as well.  A 90% maxed out card cancost you as many points as a collection

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Good morning Brammy,

What does the following quote from MyFICO mean?

"This credit usage ratio is one of the most important factors to your FICO score, so you should work on paying down your balances. Your FICO score looks at the ratio of revolving debt, but not in which accounts the debt resides. Therefore, consolidating or moving your debt from one account to another will usually not help your FICO score since the same total amount is owed."

I always thought because of that statement that FICO did not look at individual accounts for util, but at the whole. Am I reading it wrong? Inquiring minds want to know! LOL

Sleigh17

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I used to think so till I was correct by better minds than my own when asking abut maxing out an individual card to take advantage of a BT rate.

[SpecFile]

What??????  I thought it was total for all cards not just one.  Why do people open new TLs to drop their total util then?

[Anonymous]

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Brammy wrote:

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sleigh17 wrote:

---

Brammy wrote:

Be aware that FICO will take into account utilization on individual cards as well.  A 90% maxed out card cancost you as many points as a collection

---

Good morning Brammy,

What does the following quote from MyFICO mean?

"This credit usage ratio is one of the most important factors to your FICO score, so you should work on paying down your balances. Your FICO score looks at the ratio of revolving debt, but not in which accounts the debt resides. Therefore, consolidating or moving your debt from one account to another will usually not help your FICO score since the same total amount is owed."

I always thought because of that statement that FICO did not look at individual accounts for util, but at the whole. Am I reading it wrong? Inquiring minds want to know! LOL

Sleigh17

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I used to think so till I was correct by better minds than my own when asking abut maxing out an individual card to take advantage of a BT rate.

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Thanks for the teaching me something new today. I actually (by accident) maxed out a card recently because of a 0% BT offer. I have since paid it down some, but I was trying to use the 0% while I paid down my other cards. I guess I had better watch out for that kind of thing in the future.    

[SpecFile]

Spec need meds stat!

[Anonymous]

Still going to do it and recover later

[SpecFile]

Yeah thanks for the knowledge Brammy!  I was not clear on that either.