1% Utilization=Very Good, not Exceptional

[jeliop]

Hello to all!

Just out of curiosity, why would an overall utilization rate of 1% be considered "Very Good", and not "Exceptional"? Not complaining, just curious.  All other indicators are "Exceptional", except for "Fair" by TU and EX for "Amount of New Credit", because of inquiries (4).

Scores: EQ 798, TU 792, EX 787

Thanks!

[GApeachy]

(Same with Ds- 1% utl on Experian)

Is what you're looking at on Exp?  If so, what's the rating under credit history under Credit Summary?

[Anonymous]

Sounds like a bogus fluff CMS rating to me and such things can be ignored.  What source are you using?

But, to entertain the thread, consider that not all 1% utilizations are created equal.  It could mean $0 balances on all but one account and that balance on the one account brings overall utilization up to 1%.  It could also mean 1% utilization across all accounts, which would also arrive at 1% utilization.  Another thing, there are some profiles where a true 1% may constitute a large dollar amount (say $2000+) that may result in a scoring penalty.

[jeliop]

Hi!

All I see is this:

Low Credit Usage

Thanks!

[jeliop]

Hi, I have 9 CCs, with a total CL of $65,000. Total balances: $500. Thanks!

[SouthJamaica]

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@jeliop wrote:

Hello to all!

Just out of curiosity, why would an overall utilization rate of 1% be considered "Very Good", and not "Exceptional"? Not complaining, just curious.  All other indicators are "Exceptional", except for "Fair" by TU and EX for "Amount of New Credit", because of inquiries (4).

Scores: EQ 798, TU 792, EX 787

Thanks!

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No reason in the world.

[jeliop]

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@SouthJamaica wrote:

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@jeliop wrote:

Hello to all!

Just out of curiosity, why would an overall utilization rate of 1% be considered "Very Good", and not "Exceptional"? Not complaining, just curious.  All other indicators are "Exceptional", except for "Fair" by TU and EX for "Amount of New Credit", because of inquiries (4).

Scores: EQ 798, TU 792, EX 787

Thanks!

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No reason in the world.

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Many thanks!

[Anonymous]

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@jeliop wrote:
Hi, I have 9 CCs, with a total CL of $65,000. Total balances: $500. Thanks!

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@Anonymous weren't you talking about raw number thresholds for revolving balances? Was I reading $500 was one? I could be totally off-base, though, lol

[Anonymous]

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@Anonymous wrote:

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@jeliop wrote:
Hi, I have 9 CCs, with a total CL of $65,000. Total balances: $500. Thanks!

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@Anonymous weren't you talking about raw number thresholds for revolving balances? Was I reading $500 was one? I could be totally off-base, though, lol

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@Anonymous there are raw dollar thresholds, but $500 is not one. There is a report of one somewhere around there but I think that was on a mortgage score, I don't recall. 

@jeliop how many accounts with a balance do you have? If it's more than one, that's likely why it's very good.

[jeliop]

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@Anonymous wrote:

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@Anonymous wrote:

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@jeliop wrote:
Hi, I have 9 CCs, with a total CL of $65,000. Total balances: $500. Thanks!

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@Anonymous weren't you talking about raw number thresholds for revolving balances? Was I reading $500 was one? I could be totally off-base, though, lol

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@Anonymous there are raw dollar thresholds, but $500 is not one. There is a report of one somewhere around there but I think that was on a mortgage score, I don't recall. 

@jeliop how many accounts with a balance do you have? If it's more than one, that's likely why it's very good.

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3 accounts with a total balance of $500.00.