utl

[Anonymous]

what does UTL stand for????

[JShidell]

utilization

v/r

James

[Anonymous]

how do i figure my utl

[JShidell]

Well basically utl is the percentage of total credit used.

For example say you had a CC with a credit limit of $1000, your balance on your CC is $500.

Your utl will be 50%.  I heard its best to try and keep your utl around 10%.

I'm not sure if installment accounts calculate in with utl, I dont believe the do I could be wrong, but i'm pretty sure the majority of the utl percentage is derived from your revolving accounts (The majority probaby being CC).

I hope that helps.

v/r

James  

Message Edited by JShidell on 06-12-2008 02:42 AM

[Anonymous]

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JShidell wrote:

Well basically utl is the percentage of total credit used.

For example say you had a CC with a credit limit of $1000, your balance on your CC is $500.

Your utl will be 50%.  I heard its best to try and keep your utl around 10%.

I'm not sure if installment accounts calculate in with utl, I dont believe the do I could be wrong, but i'm pretty sure the majority of the utl percentage is derived from your revolving accounts (The majority probaby being CC).

I hope that helps.

v/r

James  

Message Edited by JShidell on 06-12-2008 02:42 AM

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There are separate utilization calculations for revolving and installment.  Revolving counts for the vast majority of the utilization calculation, so much so that installment utilization is barely worth even worrying about.

Also, revolving utilization is scored not just overall, but on each individual account as well.  So having even one card maxed out will hurt to some degree, even if overall utilization is low.

Message Edited by cheddar on 06-12-2008 05:35 AM

[llecs]

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cheddar wrote:

Also, revolving utilization is scored not just overall, but on each individual account as well.  So having even one card maxed out will hurt to some degree, even if overall utilization is low.

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....and that is why CC COs hurt so much. You are taking a hit on the CO status, the lates, AND you are taking a hit on overall utilization as well as individual. FICO is reading that card as MAXED out, even if the acct is closed.