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Have a question about utilization

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Anonymous
Not applicable

Have a question about utilization

Is utilization the same as carrying a balance? I just got my first credit card in 10 years.  I didnt want to get it, but for several reason I understand that I am pretty much forced to have a pulleable credit file.  If my credit card has a $500 limit, if I use $50 on it does that mean I have a 10% utilization?  If I pay the credit card off with the next payment due and dont carry a balance, will my utilization still be 10%?  

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1 REPLY 1
guiness56
Epic Contributor

Re: Have a question about utilization

Utilization is the ratio of how much of your revolving credit limits you use.

So yes, if you have a $500 CL and have a $50 balance, that is 10%.

 

If you pay if off before it reports to the CRAs, then you will have 0 utilization.  FICO has no memory.  It scores what it sees.

 

CC report monthly so if you have a balance when it reports, depending on how much,  that will decide what your utilization is.

 

 

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