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Will this credit approval cut my credit utilization?

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Will this credit approval cut my credit utilization?

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.
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Super Contributor

Re: Will this credit approval cut my credit utilization?


@MrYoung420 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


Total revolving limits 644500 (568500 reporting)



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Frequent Contributor

Re: Will this credit approval cut my credit 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


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Frequent Contributor

Re: Will this credit approval cut my credit utilization?

Looks like SJ types faster than me


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Super Contributor

Re: Will this credit approval cut my credit utilization?


@Caardvark wrote:

Looks like SJ types faster than me


Yeah I'm fast.

 

Dumb and careless.

 

But fast.


Total revolving limits 644500 (568500 reporting)



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