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## Utilization ratio question

I'm newer, and I don't understand the utilization portion of scoring. I have a few cards, and about 14,000 in available revolving credit. One of the cards is a furniture store card, that has a 3000 limit and we bought a set that cost 4500, so we used the available limit on the card and paid the rest. So I'm using 100% of the balance ON THAT CARD, but overall I'm just using 20%{+\-} of my balance....how does that affect me? Does it score each card as how much is utilized or your total available? Thanks for helping it you can!
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Moderator Emeritus

## Re: Utilization ratio question

You are at max for one of your cards, yes, this will have some affect on your score, what that affect is, however, is a YMMV type of thing.

Starting Score: 504
July 2013 score:
EQ FICO 819, TU08 778, EX "806 lender pull 07/26/2013
Goal Score: All Scores 760+, Newest goal 800+
Take the myFICO Fitness Challenge

Current scores after adding \$81K in CLs and 2 new cars since July 2013
EQ:809 TU 777 EX 790 Now it's just garden time!

June 2017 update: All scores over 820, just pure gardening now.
Message 2 of 6
New Member

## Re: Utilization ratio question

Thanks shogun, any other thoughts, clarifying tips or formulas from additional contributors are also welcomed.
Message 3 of 6
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Regular Contributor

## Re: Utilization ratio question

VendingKing1 wrote:
I'm newer, and I don't understand the utilization portion of scoring. I have a few cards, and about 14,000 in available revolving credit. One of the cards is a furniture store card, that has a 3000 limit and we bought a set that cost 4500, so we used the available limit on the card and paid the rest. So I'm using 100% of the balance ON THAT CARD, but overall I'm just using 20%{+\-} of my balance....how does that affect me? Does it score each card as how much is utilized or your total available? Thanks for helping it you can!

FICO does give some score wieght to each cards individual utilization and to your revolving utilization in total. Some of the things I have found in monitoring my score over the years is that your score will get dinged for a variety of reasons: a) if you have a "maxed out" credit card (usually 90%+ UTIL), b)if you have balances reporting on more than 50% of your accounts, and c) if you have too many new accounts.  Other notes - my scores improved when UTIL on an individiual card dropped below 50%, then again when below 30% and also at 10%. For Total Utilization, I have seen similar results with the optimum score being at 9% or lower with only 1 or 2 cards reporting balances.   Hope this helps

FICO: EQ 769, TU 762 , EX ???

Message 4 of 6
Valued Contributor

## Re: Utilization ratio question

Or maybe the store card is not used in the utilization.

Message 5 of 6
Blogger

## Re: Utilization ratio question

Shogun wrote:

You are at max for one of your cards, yes, this will have some affect on your score.

I confirm this. You can refer to my experience here:

http://ficoforums.myfico.com/t5/Credit-Cards/Guess-the-cause-of-my-score-drop/td-p/1723226/page/6

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