Revolving Credit Calculation.

[Anonymous]

I have two credit cards one from orchard with $300 limit.The other one from cap.1 without a limit they are only reporting a balance of $357.How do i bring my utilization ratio down to 15-20%?Do i add up both the limit and the balance which gives me a total of $657 then multiply by 15-20% to get the correct ratio?How do i get around this mess crapital one has created?Will appreciate your input thanks.

[Tuscani]

To figure utilization: Balance (divided) by Credit Limit = percentage. Lower then 30% recommended per account, this is one of the fastest means for increasing the over all credit score.

[Anonymous]

Does the fico formula calculate total limit against the total balance ,or it calculates the limits and balances separatly to get the proper ratio utilization?

[MidnightVoice]

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sylva45 wrote:

Does the fico formula calculate total limit against the total balance ,or it calculates the limits and balances separatly to get the proper ratio utilization?

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The reply is probably "yes: 

It likes low overall utilization, but does not like a single card maxed out and others at zero 

[Tuscani]

sylva45 wrote:

Does the fico formula calculate total limit against the total balance ,or it calculates the limits and balances separatly to get the proper ratio utilization?

Balance to Limit.... or Balance to High Balance if limit is not reported.

Also, both individual TL util and overall util is calculated when determining a score.

Message Edited by Tuscani on 05-23-2007 10:50 AM