utilization

[laryn41]

is uti the % of what is used on each card or the % of the them all added together?

[SpecFile]

util is the balances on all of your CCs combined divided by the CLs on all of your CCs combined.

EX:  Card 1  CL=$ 500    Balance=$100

        Card 2  CL=$1,000    Balance=$100

        Card 3  CL=$ 500    Balance=$100

You have 3 CCs with CLs of $2,000 combined and they are carrying balances of $300 combined.

300/2000=   15% util

Message Edited by SpecFile on 09-05-2007 08:52 AM

[laryn41]

ok...so it's  combined not each seperate has it's own utilization%

[laryn41]

store cards too?

[SpecFile]

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!

[Anonymous]

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SpecFile wrote:

util is the balances on all of your CCs combined divided by the CLs on all of your CCs combined.

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Specfile is correct, however, you want to keep an eye on the util for each individual card as well because some creditors will do soft pulls on a regular basis and take a look at your other cards individually to see if you are running high balances on any of them.

HSBC is good for that because it gives them the reason they need to invoke universal default and ratejack you. They did it to me although I have never missed a payment, have always paid more than the minimum and sometimes even PIF. But they said it was due to my balances with my other creditors. This of course was when I was young and naive.

No, actually, it must have been when I was naive because I can't remember when I was young.

[Anonymous]

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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

[SpecFile]

Absolutely right Sleigh.  I didn't think about the soft pulls.   Good advice!

[SpecFile]

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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. 

[Anonymous]

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