Question on utilization

[Anonymous]

This is just a general question on how utilization is figured, lets say a person has a credit card #1 with 100% util and credit card # 2 with 50% util,  than would their util be 75% for a average betwen cards?

also what if card #1 was @ 0% util and card # 2 @ 80% util what would be their util?

[Anonymous]

As far as scoring is concerned they look at total avail credit versus total actual balances on all cards, that is how utiliz is determined.

[Anonymous]

I thought utilization was figured  from revolving credit lines and if they only had 2 credit cards would my question be valid ?

[Anonymous]

Yes that's correct, I was referring to CC debt, and revolving debt.  Sorry my first post wasn't clear.

[Anonymous]

So my question still remains:   Is utilization figured from an average of used and avalible credit on all revolving credit lines?

I would really like to know the answer to this one:

only have 2 cards   #1 @ 5% util      #2  20% util      what is my util ?

[Anonymous]

---

@Anonymous wrote:

So my question still remains: Is utilization figured from an average of used and avalible credit on all revolving credit lines?

I would really like to know the answer to this one:

@Anonymous have 2 cards #1 @ 5% util #2 20% util what is my util ?

---

It depends on what your credit line is on each of these accounts. They don't just average 2 percentages. That is very inaccurate. For example, say you have a card maxed out with a $500 limit and another card with 10%($500) of a $5000 limit. They way you are trying to do this, the util would be 55% (100% + 10% = 110% / 2 = 55%) and that is not correct. They take the total amount owed, $1000 in this case, and divide it by the total available credit, $5,500. $1000/$5500 = .181818 X 100 = 18.18% utilization. So you can see how big if a difference 55% is from 18%.