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Old 10-08-2019, 05:12 AM   #21
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Originally Posted by jazz4cash View Post
Iíve always wondered how utilization is calculated. I suspected a borrower is dinged If one card has a high utilization even if the others are at zero. That hurts folks (like me) who piled into 0 rate balance transfer offers. Iíve asked about this several times when speaking with credit gurus at seminars or on the radio. Not one was able to provide a straight answer.
I check my credit monthly through the Credit Karma site. It appears to me that the credit agencies they show are using a composite utilization score. When my usage on one card increases, but the total usage stays the same, I don't notice any changes in scoring.
Who really knows though....
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Old 10-08-2019, 05:31 AM   #22
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It’s the credit utilization part of your score as others have said. I charge a lot of business expenses on my card, paying them off at month’s end and my score used to go from the low 800’s to the mid 700’s. Then I asked for a credit line increase which reduced my percent of credit used. Problem solved. The score still drops as my balance increases, but not nearly as much as it once did.
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Old 10-08-2019, 05:45 AM   #23
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As others pointed out, at the OP's score there is nothing to be concerned about.

Another point I didn't see mentioned is that each agency calculates your score based on a snapshot in time. So one might look at your record on a different day of the month than another, and this can easily lead to a very different score.
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Old 10-14-2019, 04:12 PM   #24
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Originally Posted by karen1972 View Post
They do track a high water mark for each card, so even though its 10% of total available credit, it is significantly higher on that one card. It goes back to they prefer you never use more than 40% on any given card.
I have not seen utilization rate ever evaluated in this manner among the standard attribute values the bureaus provide for scoring. The only entity that might be concerned in regards to your utilization rate of a single trade/credit card would be just the issuer of that card, especially if it's a recently issued card. There's a lot of misconceptions in regards to credit scoring, unfortunately the modelers behind the various scores are peddling intellectual product and therefore need to keep the detailed variables and weightings proprietary. While I don't know the weightings behind a FICO score, or the exact variables they use in that score, I have seen the 2,000+ variables the bureaus make available to modelers and I don't ever remember seeing a "Highest Single Trade Utilization" variable.
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Old 10-14-2019, 05:13 PM   #25
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As others pointed out, at the OP's score there is nothing to be concerned about.

Another point I didn't see mentioned is that each agency calculates your score based on a snapshot in time. So one might look at your record on a different day of the month than another, and this can easily lead to a very different score.
Does it work this way?
I thought that when the CC cycle ends, this number gets reported to all the agencies and if one has all the CC cycles with the same reporting period, these numbers are effectively locked for one month at a time.
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Old 10-14-2019, 05:17 PM   #26
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Does it work this way?
I thought that when the CC cycle ends, this number gets reported to all the agencies and if one has all the CC cycles with the same reporting period, these numbers are effectively locked for one month at a time.
The agencies report the balance and payment history at their own schedule. Some report to all three agencies, some two and some maybe only one.

Even if it is at month end, or cycle end, it is a snapshot.
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Old 10-14-2019, 06:19 PM   #27
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As others pointed out, at the OP's score there is nothing to be concerned about.



Another point I didn't see mentioned is that each agency calculates your score based on a snapshot in time. So one might look at your record on a different day of the month than another, and this can easily lead to a very different score.


I seem to recall that one of the bureaus was peddling a new product that was supposed to provide more of a time-lapse picture. There is certainly no shortage of new credit score flavors.
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Old 10-14-2019, 08:20 PM   #28
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Once a person gets into the rarefied air of 760+ credit score, the differences become nearly meaningless.
This is a massive assumption, but I think those that literally do not use Credit, but once did and were up in the 800+ range will likely stay there until they open a new account that gets reported to the credit bureaus. THEN, they will drop if that new account gets reported.

I never did like this # but the key is that you stay above that 760+ range. If you drop below that and your insurance comes up for renewal, they might ding you and increase the policies cost based on the lower trending score.

Otherwise, nothing to be concerned about. I always make sure I maintain 760+. I was around 810 back in July when I refinanced our home...it pushed me all the way down to 760 after that refinance (I did pay down a pt and wrapped that into the total loan) soo...total LTV technically increased a little and I'm certain that is why it dropped so much.

Meanwhile, my wife who uses literally almost no credit (is not on the mortgage and has no loans) hovers around the 850 mark.

Once I drop below Excellent, it's a trigger to stop applying for new credit.

Credit is funny, but once you have an excellent rating and most of lifes big purchases have occurred (New car + Home + CCs) I don't see how it would change much after.

If you are buying your very first home...credit is basically the most important piece of the puzzle alongside coming up with that 20% downpayment to get the best interest rate while avoiding PMI Private Mtg Insurance when you pull the trigger. Other than that its basically irrelevant IMHO.
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Old 10-14-2019, 10:18 PM   #29
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My credit score hovers about 820. I noticed the utilization is 1% and 0 late payments. I tend to pay of the charges almost as soon as they land - before the statement comes out. I just don't like owing money. To anyone. At all.

I recall getting dinged in the past for not having some type of installment payments. (I paid off my mortgage after seven years, years ago.)
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Old 10-15-2019, 02:29 PM   #30
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720-740 is now Tier 1 for many lenders.

I wouldn't worry unless your score drops below that level.
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