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Utilization Question

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Anonymous
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Utilization Question

Is Utilization based only on credit cards or all revolving accounts?

Granted it is CK.... but they have it listed as Credit Cards. I thought my 2 Unsecured Lines of Credit would be included in that. Maybe I was wrong tho.

TIA
Message 1 of 5
4 REPLIES 4
SouthJamaica
Mega Contributor

Re: Utilization Question


@Anonymous wrote:
Is Utilization based only on credit cards or all revolving accounts?

Granted it is CK.... but they have it listed as Credit Cards. I thought my 2 Unsecured Lines of Credit would be included in that. Maybe I was wrong tho.

TIA

Forget CK.

 

My unsecured lines of credit are factored into utilization.


Total revolving limits 741200 (620700 reporting) FICO 8: EQ 701 TU 704 EX 685

Message 2 of 5
Anonymous
Not applicable

Re: Utilization Question

That’s what I thought. Thank you.
Message 3 of 5
Anonymous
Not applicable

Re: Utilization Question

Helpful response by SouthJ as always.

 

FICO used to ignore any revolving account if the credit limit was huge enough.  A number of people thought the threshold for old models was 35k (thus 34.9k or less would be completely safe) and that it might be higher for FICO 8.  The last round of testing seemed to show that 50k was safe for FICO 8.

 

Bear in mind that several credit monitoring services will erroneously round util % to the nearest integer (in their front-end summary page) rather than the way the FICO algorithm actually works, which is to round UP.  Thus Credit Check Total, Credit Karma, and I think even myFICO Ultimate have been known to round 0.3% to 0% and 9.2% to 9%.  The true FICO algorithm (on the back end) rounds those to 1% and 10% respectively.

 

That's important to know because 0% and 10% both involve scoring penalties.

Message 4 of 5
Anonymous
Not applicable

Re: Utilization Question

Thx Dixie. Smiley Wink
Message 5 of 5
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