Understanding Utilization

[Anonymous]

I was wondering how utilization works...

Is utilization figured monthly according to how much you charge in a month, or is it figured by the balance you carry month to month?  Just curious...

Thanks

[MarineVietVet]

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@Anonymous wrote:

I was wondering how utilization works...

Is utilization figured monthly according to how much you charge in a month, or is it figured by the balance you carry month to month?  Just curious...

Thanks

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For most cards the utilization is calculated by your balance that is reported on your monthly statement. That's why it's so important to keep the balance low right before the statement posts.

There are exceptions for No Preset Spending Limits Cards.

From a BK years ago to:
EX - 9/09 pulled by lender 802, EQ - 10/10-813, TU - 10/10-774

"Some people spend an entire lifetime wondering if they've made a difference. The Marines don't have that problem".

[Anonymous]

Thanks marine!

One more question, how does one know when a statement will post to the CRA?

[MarineVietVet]

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@Anonymous wrote:

Thanks marine!

One more question, how does one know when a statement will post to the CRA?

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There is no one answer. Again most cards report to the CRA's on the statement date or within a day or so but others report on the last business day of the month. You'll need to contact your issuer(s) and find out for sure.

From a BK years ago to:
EX - 9/09 pulled by lender 802, EQ - 10/10-813, TU - 10/10-774

"Some people spend an entire lifetime wondering if they've made a difference. The Marines don't have that problem".

[Anonymous]

Thank you MarineViet - you've been a great help!