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## Utilitization?

Established Contributor

## Re: Utilitization?

J,

Only because I like you

Utilization:  how much of your available credit on your cards you're actually using.

So say you have just 1 CC with a \$5000cl, and you're running a balance of \$2500, that 50% util.  You're using 50% of your available credit.

The same principle is applied if you have multiple CCs.

Say now you have 3

CL CC1 = \$5000
CL CC2 = \$2500
CL CC2 = \$1000

Total available credit = \$8500

Now if
CC1 Balance is \$2500 (50% util)
CC2 Balance is \$500 (20% uitl)
CC3 Balance is\$100 (10% uitl)

You overall util is 3100/8500 or approx: 36.5%

What we've learned on here is that to max out your FICO points you have to look at both your overall Util and per card Util and keep both between 1-9%.  While 30% is good util, but you seem to get the most points with 1-9%.  Which is why you'll see it suggested on here that if you can't get them all to 1-9% through payments.  Say one is high and the other is low, one option is to shuffle them around.  That's a personal decision, and would depend on what you're objectives are and how much time you have.

So just remember this:

1-9, on time, all the time!

Hope this helps

-trini

Message 11 of 27
Frequent Contributor

## Re: Utilitization?

trinigal wrote:
J,

Only because I like you

Utilization:  how much of your available credit on your cards you're actually using.

So say you have just 1 CC with a \$5000cl, and you're running a balance of \$2500, that 50% util.  You're using 50% of your available credit.

The same principle is applied if you have multiple CCs.

Say now you have 3

CL CC1 = \$5000
CL CC2 = \$2500
CL CC2 = \$1000

Total available credit = \$8500

Now if
CC1 Balance is \$2500 (50% util)
CC2 Balance is \$500 (20% uitl)
CC3 Balance is\$100 (10% uitl)

You overall util is 3100/8500 or approx: 36.5%

What we've learned on here is that to max out your FICO points you have to look at both your overall Util and per card Util and keep both between 1-9%.  While 30% is good util, but you seem to get the most points with 1-9%.  Which is why you'll see it suggested on here that if you can't get them all to 1-9% through payments.  Say one is high and the other is low, one option is to shuffle them around.  That's a personal decision, and would depend on what you're objectives are and how much time you have.

So just remember this:

1-9, on time, all the time!

Hope this helps

-trini

thanks alot that was a big help, im in the process of building my credit now so im start with the BOA secured cared and a low balance. SO say i have a \$1000 limit i would want to keep the balance at about \$100?

Starting Score: 643
Current Score: 657
Goal Score: 700

Take the FICO Fitness Challenge
Message 12 of 27
Established Contributor

## Re: Utilitization?

jenkins wrote:

thanks alot that was a big help, im in the process of building my credit now so im start with the BOA secured cared and a low balance. SO say i have a \$1000 limit i would want to keep the balance at about \$100?

Message 13 of 27
Frequent Contributor

## Re: Utilitization?

ok thanks alot im hoping this BOA card and everything else im doing will help bring my scores up ive been sitting at 541 for a long time now

Starting Score: 643
Current Score: 657
Goal Score: 700

Take the FICO Fitness Challenge
Message 14 of 27
Established Contributor

## Re: Utilitization?

Honey, I'm just a few points ahead of you.  Just keep plugging at it and it'll improve.  You're here now, you'll learn and it'll improve.  Everything is a process.

Message 15 of 27
Frequent Contributor

## Re: Utilitization?

another question whats a good method of paying off? should u pay the min? or pay as much as i can? i was told paying it all off at once doesnt help your score as much as making smaller payments

Starting Score: 643
Current Score: 657
Goal Score: 700

Take the FICO Fitness Challenge
Message 16 of 27
Established Contributor

## Re: Utilitization?

jenkins wrote:
another question whats a good method of paying off? should u pay the min? or pay as much as i can? i was told paying it all off at once doesnt help your score as much as making smaller payments

Others will have to chime in here, but that doesn't make sense to me. If FICO is a snapshot of your credit profile at the point you pull it, then how you pay down should not matter.  If in January your util was 95%, your score will reflect that picture, if in February you're down to 5% your credit score will reflect that picture. FICO doesn't take into account what was you balance the month before.

So my suggestion, pay as much as you can every month.  If you stay at 1-9% that's should not be so much of a problem.

Message 17 of 27
Frequent Contributor

## Re: Utilitization?

ok thank you very much!!

Starting Score: 643
Current Score: 657
Goal Score: 700

Take the FICO Fitness Challenge
Message 18 of 27
Established Contributor

## Re: Utilitization?

dang you're quick!
Message 19 of 27
Frequent Contributor

## Re: Utilitization?

haha it was luck caught you as soon as you posted, and the fact im bored with nothing to do some im on these boards like an eagle lol

Starting Score: 643
Current Score: 657
Goal Score: 700

Take the FICO Fitness Challenge
Message 20 of 27