Figuring out my utilization

[Anonymous]

Can someone help me figure out my UTIL on my credit reports?  The total of my outstanding debt as of today including a balance on an auto loan is $9451.94.  This covers all 13 accounts.  The credit limit total for all CC accounts is $19.571.  I can provide more info as needed.

Thanks.

[MarineVietVet]

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@Anonymous wrote:

Can someone help me figure out my UTIL on my credit reports?  The total of my outstanding debt as of today including a balance on an auto loan is $9451.94.  This covers all 13 accounts.  The credit limit total for all CC accounts is $19.571.  I can provide more info as needed.

Thanks.

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All you really need to know is your credit card utilization. Installment loan utilization is scored but it's a very small factor.

Divide your total revolving balances by your total available credit to figure revolving utilization.

From a BK years ago to:
EX - 9/09 pulled by lender 802, EQ - 10/10-813, TU - 10/10-774

"Some people spend an entire lifetime wondering if they've made a difference. The Marines don't have that problem".

[Anonymous]

And remember that individual utilization on each card counts, too. 

FICO scores you on overall utilization, and on invidual utilization.

As MVV points out, this includes your revolving accounts.  Installment utilization is scored entirely differently. 

And it's not only FICO that watches your utilization.  Your creditors will soft pull you, as well.  High overall or individual utilization raises a red flag and may result in () A.A.  (Adverse Action i.e. CLDecrease or even account closure).

[vanillabean]

And don't forget that not all cards are used for utilization.

Take something like $2,000/$5,000 and $10/$1,000 respectively.  The utilization is 40% for the former, 1% for the latter and 34% for both.

[RobertEG]

Agree,  Disregard, in planning, the % util of  installment loans.  Focus on your revolving lines of credit (credit cards).

FICO made a statement in one of their webinars a few years ago that revolving % util is scored at approx. half for overall % util, and the other half for combined util of individual cards. 

This is my understanding of how this would break down in actual scoring.

Util of credit is approx 30% of overall FICO score.  That is apprix 255 points max.

If half of this is based on overall % util, that is approx 125 points weighted to overall util, and the other 125 or so assigned on a combined asessmenent of indiv card utils.

For individ REVOLVING card util, there are two factors,  The indiv % util on each card, and the number of cards, expressed as a % of total cards, that report any balance.

That is as specific as Fair Isaac breaks it down for us.

So make the assumption that you have four credit cards.  That amounts to five sub-factors under indiv. card  % util.  The indiv % util on each of the four cards, and the % of cards showing balances.  Dividing 125 by 5, then a general estimate is that % util on each card weighs in at around 25 points apiece, and % of cards reporting a balance weighs in also at around 25 points.  I know these are just broad assumptions, but I think it makes the general point of the importance of overall % util versus the efffect of indiv card utils.  It may very well be true that FICO does not score each indiv card the same (such as in the assumption I made that all count equally at 1/5), and may weigh higher percentage util indiv cards more than lower % util cards, but they could never count as much as overall % util.  Some assumptions are necessary, since Fair Isaac does not offer specific details of their actual scoring algorithms. But I think my assumptions are reasonable for general purposes.

From all that Fair Isaac has disclosed, it would appear to me that overall % util counts approx 4-5 times more in scoring than the indiv util of a single card.

That should guide you on how to view scoring of your revolving % util.

[Anonymous]

Ok, I'm really concerned now.  Unless I've miscalculated and done something wrong, my util comes out at 108% for all of them.  Is this even possible?  My cards are not maxed out so this can't be true.

[MarineVietVet]

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@Anonymous wrote:

Ok, I'm really concerned now.  Unless I've miscalculated and done something wrong, my util comes out at 108% for all of them.  Is this even possible?  My cards are not maxed out so this can't be true.

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If you'll break down each of your cards by issuer, balance, and credit limit perhaps someone can help you calculate overall and individual utilization.

From a BK years ago to:
EX - 9/09 pulled by lender 802, EQ - 10/10-813, TU - 10/10-774

"Some people spend an entire lifetime wondering if they've made a difference. The Marines don't have that problem".

[RobertEG]

+1

If you are still confused, you need to post each revolving account by type, its current CL, and its current balance.

Both lines of credit and credit cards are techinically revolving lines of credit, but not all are treated the same in FICO scoring.

There are some wrinkles in this FICO calculation.  Are any of your revolving acconts HELOCS, and if so, what is the limit  and current  usage?

Are some of your accounts "no-CL cards," that may only be using your higherest prior util, which you have now exceeded?

If you haave a preset CL on each card, and know your current balance, the computation on each card and your overall %util is just a matter of math.

If you have wrinkles, such as high limit HELOCS or non-CL cards, then that is needed.

[Anonymous]

Ok all - here's the info requested.  It's copied from a spreadsheet I'm keeping.  These are CCs only.  I have a small balance for an auto but since someone said previous that it doesn't really factor much into the util, I'm not including it.  The (-) represents no balances.  If anymore info is needed, I'm happy to provide.  Thanks.

Lender	Amount Owed	As of	Type	Credit Limit
Best Buy	$         508.12	12/1/10	CC	$     700.00
Baxter Credit Union	$         717.73	12/1/10	CC	$  3,000.00
Capital One	$         389.38	12/1/10	CC	$     550.00
Chase	$       1,325.34	12/1/10	CC	$  1,500.00
Citibank	$       1,771.58	12/1/10	CC	$  2,000.00
Credit One	$         821.84	12/1/10	CC	$  1,575.00
Dell	$                -	12/1/10	CL	$  3,000.00
HSBC	$         628.28	12/1/10	CC	$  1,200.00
JC Penney	$           64.45	12/1/10	CC	$     750.00
Merrick	$         561.91	12/1/10	CC	$  1,150.00
Newegg	$                -		CL	$  1,076.00
Orchardbank	$         611.82	12/1/10	CC	$     960.00
PayPal	$                -	12/1/10	CL	$     330.00
Sam's	$         122.10	12/1/10	CC	$     600.00
Target	$         529.62	12/1/10	CC	$     800.00
Walmart	$                -	12/1/10	CC	$     380.00

[llecs]

Here's what I have...

Best Buy	508.12	700.00
Baxter CU	717.73	3,000.00
Capital One	389.38	550.00
Chase	1,325.34	1,500.00
Citibank	1,771.58	2,000.00
Credit One	821.84	1,575.00
Dell	0.00	3,000.00
HSBC	628.28	1,200.00
JC Penney	64.45	750.00
Merrick	561.91	1,150.00
Newegg	0.00	1,076.00
Orchardbank	611.82	960.00
PayPal	0.00	330.00
Sam's	122.10	600.00
Target	529.62	800.00
Walmart	0.00	380.00
	8,052.17	19,571.00	0.411434

As on 12/1, your util is 41.1% based on your spreadsheet above. Question: Is Newegg included in your util? I don't think it is. I may be wrong, but I thought they didn't report. If it doesn't report, then your util is 43.5%.

Installment util is scored seperate and differently (much, much differently) than revolving. I'd ignore it.

Remember, your CRs won't show that 41.1% util (or 43.5% minus Newegg). CCCs typically report the balance you had on the statement date (except maybe HSBC above). Because of the different dates, your util can easily change multiple times monthly.

All is assuming that the $0 balance TLs are open.