When Does New Card Figure in Credit Utilization?

[kshurika]

I know that it takes about a month for a new card and its CL to show up on FAKO sites. However, I was wondering exactly when the new CL figures in the calculation of your total credit utilization ratio for FICO 8. Is it immediately upon being granted the new card, or does it too require a month to figure in the calculation?

[Cherekas]

When new cards have reported on my credit file, the utilization reports immediately. I use Credit Karma for their monitoring services and any line that reports on there is immediately added to my utilization.

[Anonymous]

I have a CCT subscription so I get a daily EX pull with score and report.  Utilization in FICO is immediate when the card posts.

When my Amex posted, I was testing the 9% factor so I let aggregate utilization report around 11% knowing that if/when Amex reported, it would lower me to 8%.  It reported on schedule, utilization was included, and score went up.

[kshurika]

Well, as I said, since Credit Karma is fiction, I'm not really looking at when a new card is posted there. I was just wondering when the new credit line figures in my overall credit utilization. Is there a lag time of one month the way there is for the appearance of the card on websites, or is the new CL figured into the equation immediately?

Thanks, though.

[Anonymous]

It is factored into FICO the minute it appears on reports.

[kshurika]

Okay, so as I understand it, as soon as I am granted a new card with a new CL that CL becomes part of my credit utilization calculation. The FAKO sites may report a really high CUR because they haven't figured in my new card, yet. But FICO figures it in immediately.

Have I gotten that right?

[Revelate]

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@kshurika wrote:
Okay, so as I understand it, as soon as I am granted a new card with a new CL that CL becomes part of my credit utilization calculation. The FAKO sites may report a really high CUR because they haven't figured in my new card, yet. But FICO figures it in immediately.

Have I gotten that right?

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The tradeline has to actually be reported.  If it's not on the report, no algorithm in the world knows about it.

Once it's reported to the bureaus and therefore on your credit file, it counts for everything.

[kshurika]

I don't know what a tradeline is, but how long does it take after the granting of a new card does it take for the new CL to be figured into the calculation of your new credit utilization ratio?

[expatCanuck]

Folks here tend to use credit line and tradeline synonymously.

An issuer first reports a new account/card when they report it.  I was recently issued a Barclay Ring card.  Barclaycard reported the new account (and its credit line) to the bureaus before the card even arrived, and the new limit factored into my utilization calculation from that point on.

In contrast, I was also recently issued a Chase card that I've been using since late last month, and I don't expect Chase to report the account 'til February, when the first statement cuts.

In my experience, Discover and Amex fall between these extremes.  (It was a busy month. )

[Anonymous]

Immediately on reporting.

Right away.

That very second.

Instantly.

Not one minute later.

Zero milliseconds.

If it is on a credit report, it is part of utilization calculation.