@Anonymous wrote:
Hi there
Right now I have two credit cards one with capital one (1000 limit) and one with discover (2000 limit) Currently I owe discover 1800 which I have planned to make a payment of 1000 then 800.. I was approved for a 2000 credit limit with Best Buy (Citi) does the Best Buy card cut my utilization under 25%? Regardless of I made or not.
Once it reports it will cut your aggregate utilization from 45% to 30%. You will still be penalized for having 90% utilization on the Discover card, which is the same as being maxed out. Also you will lose points from shorter age of newest account, shorter average age of accounts, and the inquiry. Also there is a penalty attached to having 30% aggregate utilization, as opposed to, let's say, 28%.
I am assuming you meant that each of the Capital One cards has a $1000 limit. If you actually meant that they have a total $1000 limit between them, then the numbers are:
before: 60% aggregate utilization
after: 36% aggregate utilization
Assuming your balance on the Capital One card and Best Buy card are $0, your new utilization (including the Best Buy card) is 36%.
(Total of Balancers) / (Total Credit Limits) = utilization
Looks like SJ types faster than me