what is CC utilization?

[Anonymous]

I'm need and confused.  What is credit card utilization?

If I use my credit cards throughout the month but pay it down to 0 before the due date, then is my credit card utilization 0? Or do they use what I put on it each month?  I like to use my credit card for rewards and pay my house bills with each month, but pay the balance to 0 with each check.  It is showing a 0 balanance on my credit report.

Thanks in advance.

[Anonymous]

cc utilization is the ratio of your credit balance to your credit limit:  balance/cl = utilization.

It is a major component in the "Amounts Owed" (on the pie chart in the Credit Education tab in the black menu) which accounts for a full 30% of your FICO score.

If you type in the search box "utilization" you will see in-depth discussions on the subject. I've learned that the search box is a great way to educate yourself.

Message Edited by Sylviatob on 11-14-2007 09:25 AM

[Anonymous]

double poster!

I thought I was the only one

haha

[Anonymous]

Doh! I was using IE at the time I posted it. I rarely use it when I'm here.