Individual credit line utilization vs. total credit utilization

[Anonymous]

In my endeavors to keep my utilization between 1-9% I realized that I am not sure which utilization to target.

For instance I have three cards, 1) 3700 limit, 2) 7500 limit, 3) 8000 limit.

The only card I allow to report is 1, I will report a balance of $40 every month putting my utilization for that card just above 1%. (The other 2 I PIF every month)

My question: Is what I am doing correct or should I try to maintain 1% utilization of my entire credit line, or reporting roughly $200 per month? (Which in turn would be utilizing 5.4% of my credit limit on card 1)

[fused]

For max utilization points, it varies from person to person. Some say keep your overall util below 9% and have less than half of your cards reporting any balance. For me, this is what works the best.

Have overall util reporting 1%

Have only one card reporting 1% util

Have all other CCs reporting $0 balances

I have been able to keep my FICO scores above 800 by doing these three things. Keep in mind that FICO will consider just $1 reporting on a CC as 1% util, even if the dollar amount is a lot less than 1%.

[Anonymous]

How can you have overall util at 1% and 1 card reporting 1% and all other cards reporting 0 balances? Can you show me the numbers?

As I said in my case in order for me to report 1% over util I have to report 5% on the 1 card that reports. Then I have all the others report 0.

Also, how does my mortgage effect my util?

[fused]

Mortgages and other loans that report as installments do not factor in "revolving util calculations" Installment util calculations are a very small part of the FICO scoring algorithm. When it comes to util calculations, its all about the revolving lines. Are you sure there isn't another trade line factoring in revolving util calculations on your reports? Do you have a charge-off or some other type of line of credit?

[unctarheel08]

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@Anonymous wrote:

How can you have overall util at 1% and 1 card reporting 1% and all other cards reporting 0 balances? Can you show me the numbers?

As I said in my case in order for me to report 1% over util I have to report 5% on the 1 card that reports. Then I have all the others report 0.

Also, how does my mortgage effect my util?

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he stated in his post, that anything from $1 - 1% utilization reports as 1% utilization.

[Anonymous]

"Keep in mind that FICO will consider just $1 reporting on a CC as 1% util, even if the dollar amount is a lot less than 1%"

So, will reporting $1 on my AMEX and reporting 0's on the other two give me 1% util on my amex and 1% util overall?

[Anonymous]

" Are you sure there isn't another trade line factoring in revolving util calculations on your reports?"

I do not understand this question.

As to your questions about credit lines. I have three credit cards and a mortgage. Those are all of my lines of credit.

[vanillabean]

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@fused wrote:

Have overall util reporting 1%

Have only one card reporting 1% util

Have all other CCs reporting $0 balances

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I trust the overall util is more like a tenth of 1%, but, as you noted, rounded up.

In my case, the 1% is exactly 1% (two cards report neither a credit limit nor a high balance).

[fused]

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@Anonymous wrote:

"Keep in mind that FICO will consider just $1 reporting on a CC as 1% util, even if the dollar amount is a lot less than 1%"

So, will reporting $1 on my AMEX and reporting 0's on the other two give me 1% util on my amex and 1% util overall?

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It depends on which Amex card. A revolving one, yes. A charge card like Gold or Plat, yes and no. When it comes to Amex charge cards, they will never factor in util calculations on EQ and TU, but they will on TU.

[fused]

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@Anonymous wrote:

" Are you sure there isn't another trade line factoring in revolving util calculations on your reports?"

I do not understand this question.

As to your questions about credit lines. I have three credit cards and a mortgage. Those are all of my lines of credit.

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You have answered my question, thank you.