@Anonymous wrote:My current Util is at 30% and as of right now bring it down to 26%, concern is though whether or not the First Premier CC that has been eating away at credit score over time currently says 143% util. will most likely lower the util even lower than 26% or decrease credit score... Original credit limit of the FP CC is $300, obviously I went over. I recently paid it off, just waiting to see what happens when they report to the 3 bureaus... Any thoughts? I'm not good at math. Maybe someone out there could do the math whether or not it'll lower the util more... or...
Generally any revolving paydown is a good thing, and stopping the bleeding is even more important when we're talking a charge-off. Get that account paid and the line in the sand drawn as a result from a scoring perspective.
I do my utilization calculations in a spreadsheet, but you seem to have a handle on individual ones, just add up current balances and all the limits, and do the same process with those two numbers to get your aggregate if you so desire.
But anyway when it comes to paying down revolving debt: proceed with confidence.
@Anonymous wrote:
Hi,
When you said just add up current balances and all the limits, and do the same process with those two numbers to get your aggregate What do you mean? The only balance I have is on my BofA rewards, $650 of $2,500 right now. Capital one: Limit $600 is at 0. Credit one: limit $300 is at 0 amd Macys is limit $600 at 0. How would I factor in 143% revolving from a first premier cc (paid off) into util?
Oh you're probably actually fine.
Aggregate balance: 650 + 0 + 0 + 0 = 650 for total balance (not including the closed account, recently not sure if that counts at all actually for revolving utilization)
Aggregate limit: 2500 + 600 + 300 + 600 = 4000.
So aggregate utilization is 650/4000 = 16.25%: not quite optimal (<9% would be better) but not bad.
The problem with the FP CO though is that it's probably still updating monthly (which is technically correct for a CO) and as such that CO is going to be reporting as brand new every single month. You want to get that paid off so the tradeline stops updating and that CO starts aging from a scoring perspective.
It may also be counting against your revolving utilization somehow but that's honestly secondary.
Ya, I paid it off, that’s the first I paid off. Also, I requested a credit line increase with capital one and got approved for additional $100 so limit is not 500 anymore its 600 now. I’ll keep reading your most recent reply until I ubderstand the math you’re providing. Thanks!
Honestly we're not entirely sure at this point how it factors: in your case it might factor just like a normal revolving account, or it might not factor at all.
Really the way to know would be to track your scores before and after you pay it off, but good job paying off that FP account, that was ugly.
If you do track the scores I'd certainly appreciate what your scores do 
.
Is the utilization percentage you're stating one that is being reported to you, or one that you calculated yourself?
