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CC utilization calculation

tag
Anonymous
Not applicable

CC utilization calculation

How does fico calculate utilization?  Do they take all your outstanding balances and divide by your total limits of all cards or do they calculate each cards utilization and divide by the number of cards you have?
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1 REPLY 1
haulingthescoreup
Moderator Emerita

Re: CC utilization calculation

Both! You are scored on both individual util and on overall. That's why it gets exciting if you have a card that you're using for a 0% balance transfer, and it's high util. Your other cards can be low, and your overall util can be low, but there will be that one stinker.

I'm in this situation, with an original 82.4% util on a new BT card. I've already paid it down to 75% before it had a chance to report a balance, and I'm going to make another big payment to get it to 69% before dropping it 5% every month. I know there's a big hit coming... Smiley Sad But it makes financial sense to go with the 0%, so I'm going to grin and bear it.
* Credit is a wonderful servant, but a terrible master. * Who's the boss --you or your credit?
FICO's: EQ 781 - TU 793 - EX 779 (from PSECU) - Done credit hunting; having fun with credit gardening. - EQ 590 on 5/14/2007
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