Credit Utilization

[Anonymous]

My credit score is currently at 702 via a third party service.

The rating says that my credit utilization is well over 100 percent, and thus, my creditors are reducing my limits.

I can't understand why this is happening, because each of my accounts is at least 10 percent below limit, with some accounts less than 10.

I have browsed the forums extensively and can't find a corresponding topic with this subject.

Might someone be able to help me to understand this?

[MarineVietVet]

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@Anonymous wrote:

My credit score is currently at 702 via a third party service.

The rating says that my credit utilization is well over 100 percent, and thus, my creditors are reducing my limits.

I can't understand why this is happening, because each of my accounts is at least 10 percent below limit, with some accounts less than 10.

I have browsed the forums extensively and can't find a corresponding topic with this subject.

Might someone be able to help me to understand this?

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Hello and welcome to the forums.

If you'll list each of your credit card balances and credit limits it should be easy to figure out.

From a BK years ago to:

9/09 EX pulled by lender 802
3/10 EQ- 800
4/10 TU -772

You can do the same thing with hard work

Credit Scoring 101
Common Abbreviations
Frequently Requested Threads
Whats In Your FICO Score

[RobertEG]

Have you recenty had a decrease in your CL on any of the cards?

[Anonymous]

When I calculate my utlization, using the limits to actual, I get a ration of about 75 percent (after all of the recent down grades).

The utilization I am getting from this service is 101 percent.

Without posting the details, how can my ratio be 101 percent when I am not over *any* credit limit, have an average credit history of over 13 years on 27 accounts and never been late on a payment???

[MarineVietVet]

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@Anonymous wrote:

When I calculate my utlization, using the limits to actual, I get a ration of about 75 percent (after all of the recent down grades).

The utilization I am getting from this service is 101 percent.

Without posting the details, how can my ratio be 101 percent when I am not over *any* credit limit, have an average credit history of over 13 years on 27 accounts and never been late on a payment???

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You know your finances better than anyone else. If you say the utilization is 75% then that's what it is.

May I ask where you got your score? Very few sites sell an actual FICO score.

From a BK years ago to:

9/09 EX pulled by lender 802
3/10 EQ- 800
4/10 TU -772

You can do the same thing with hard work

Credit Scoring 101
Common Abbreviations
Frequently Requested Threads
Whats In Your FICO Score

[Anonymous]

My "SEARS" card offered the "credit health check" for free.

Since I had earlier in the year had about $30K shaved off of my accounts by BOA, citing my utilization ratio and open accounts as their primary reasons, I took the offer as an opportunity.

They give me definitive numbers of my credit limit vs my credit utilization resulting in the 101 percent number, stating they use TRANS UNION information.

When I call the Trans Union facility they point me to Sears who point me to FICO who point me to Trans Union.

They all state that I can't "contest" this because this is not a direct inquiry against a specific item. Go figure.

[MarineVietVet]

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@Anonymous wrote:

My "SEARS" card offered the "credit health check" for free.

Since I had earlier in the year had about $30K shaved off of my accounts by BOA, citing my utilization ratio and open accounts as their primary reasons, I took the offer as an opportunity.

They give me definitive numbers of my credit limit vs my credit utilization resulting in the 101 percent number, stating they use TRANS UNION information.

When I call the Trans Union facility they point me to Sears who point me to FICO who point me to Trans Union.

They all state that I can't "contest" this because this is not a direct inquiry against a specific item. Go figure.

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I would pull my free TU credit report from annualcreditreport.com and compare it to what you have now. Reports pulled from third party sites often don't have as much information as those you can get there or directly from the CRA's.

From a BK years ago to:

9/09 EX pulled by lender 802
3/10 EQ- 800
4/10 TU -772

You can do the same thing with hard work

Credit Scoring 101
Common Abbreviations
Frequently Requested Threads
Whats In Your FICO Score

[Lel]

I wonder....

Are any of your credit accounts a Visa Signature account, or perhaps a Macy's account?  The reason why I ask is that for me, the Visa Signature account does not report a credit limit to the credit bureaus.  Recently, Macy's stopped reporting credit limits as well.

For the FICO score, if there is an account with a balance that does not report a credit limit, these are excluded from FICO scoring.  When you pull a report from here, those accounts are not included in your calculation of utilization.  Maybe this non-FICO score that you have did not make the same distinction.  Maybe it just takes the sum of your credit card balances and divides it by the sum of the reported credit limits.  If some of those CLs are not reported or are reported as zero, then it would skew the utilization calculation.

Check to see what your cards are reporting to the credit bureaus.  It may also be worth your while to check you actual FICO score here.

[Anonymous]

 I have pulled my TU accounts, and that is why this is so puzzling.

I do not have a Macy's card.

I do have one "signature card."

I did access my TU report, and used that report to assess my ratio at 75 percent.

TU refuses to discuss this ratio, because they say they don't calculate the ratio.

[Lel]

TU keeps the records, just like the other CRAs.  The various credit scores that exist - including the FICO score - are developed in conjunction with the CRAs, but ultimately the recordkeeping and the scoring are separate elements.  It's kind of like a library that keeps a record of your borrowing history - it can tell you what books you've checked out, but doesn't make any determination about your reading ability.  But your language arts teacher might take that data and make a conclusion about your reading level.   That's probably not a very good analogy.

But frankly, I don't think you be worried about a utilization that is calculated by a credit score that has no practical use in the real world.  The FICO score is the most widely used score out there, and it is that utilization that you should be concerned with.