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Question about Utilization

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tylaw13
Regular Contributor

Question about Utilization

i just wanted to clear something up. i know uti plays a big role in your credit score but if you have one month with like 90% uti and the card reports so your score is affected but then say the next month you bring it down to 5% and score goes up then people pulling your credit cant see the uti for the previouse month correct? im not sure if i explained that well enough. Smiley Indifferent

EQ FICO - 725 (9/11/13) TU FICO - 724 (6/27/13) EX FICO (6/30/13) 755 AMEX
Im my wallet - Cap1 Platinum MC(2000) Chase Freedom(1500) AMEX BCE (7000) Discover IT (8000) CSP (15000) Cal Coast CU (8000)
Message 1 of 6
5 REPLIES 5
Anonymous
Not applicable

Re: Question about Utilization

The way I understand, last month's utilization won't effect you. Your credit worthiness is based on the current "snapshot" in time.

Message 2 of 6
Anonymous
Not applicable

Re: Question about Utilization

It's just a snapshot. It takes a picture of whatever it is at that month. It doesn't account for past utilizations.

Message 3 of 6
Anonymous
Not applicable

Re: Question about Utilization

+1.  But to clarify, it is visible on credit report if they are looking for it.  However, the FICO score is blind.

Message 4 of 6
Revelate
Moderator Emeritus

Re: Question about Utilization


@Anonymous wrote:

+1.  But to clarify, it is visible on credit report if they are looking for it.  However, the FICO score is blind.


+ 2; however, this is also potentially a non-trivial factor in demonstrating responsible use of the credit you have currently from an underwriting perspective too.  I suspect it's nothing but goodness to show you can absolutely handle the amount of credit extended to you, and even if it comes up on a recon of a denial, it's trivial to explain away.  

 

TLDR: There's no downside, and there may be upside.

 




        
Message 5 of 6
tylaw13
Regular Contributor

Re: Question about Utilization


@Revelate wrote:

@Anonymous wrote:

+1.  But to clarify, it is visible on credit report if they are looking for it.  However, the FICO score is blind.


+ 2; however, this is also potentially a non-trivial factor in demonstrating responsible use of the credit you have currently from an underwriting perspective too.  I suspect it's nothing but goodness to show you can absolutely handle the amount of credit extended to you, and even if it comes up on a recon of a denial, it's trivial to explain away.  

 

TLDR: There's no downside, and there may be upside.

 


Cool thanks guys! i kinda thought thats how it was because ive been watching my scores go up and down from month to month. thanks for the clarification!

EQ FICO - 725 (9/11/13) TU FICO - 724 (6/27/13) EX FICO (6/30/13) 755 AMEX
Im my wallet - Cap1 Platinum MC(2000) Chase Freedom(1500) AMEX BCE (7000) Discover IT (8000) CSP (15000) Cal Coast CU (8000)
Message 6 of 6
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