- Centurion Member
- Posts: 639
- Joined: Sat Aug 24, 2013 8:45 pm
- Location: Grand Forks, ND
A recent blog entry about utilization contradicts something I've always been told, believed, and told others...
Using an example, let's say everything on my credit report is identical to yours, we both have the same card with the same limit (assuming we both have only one card for simplicity's sake). We both have 20% utilization but last month I had 80% utilization and yours was 20% (I'm assuming my statement has posted and the new balance has reported). According to the blog entry, your score would be better. Quoting the FICO rep on the blog:
“If you have a history of keeping your balances low and doing all the right things, you’re going to have a better score than someone who has had high balances in the past and struggled with keeping their balances down,” Sprauve says.
This runs counter to what I've been told and also doesn't make sense because I've seen credit reports on various websites and nowhere does it list previous balances. The only things I can think of is this: The column which lists "high balance" is somehow factored in, something I've occasionally pondered- although it doesn't tell anyone reading the report how long ago that balance was.
So have I assumed wrong all this time? Any thoughts from anyone on this (including blog writer Kristin McGrath assuming she reads the forum)? If your FICO score is computed "on the fly" using data in your report today, how can last month's data be factored in?
In my Wallet:
Sometimes in my Wallet:
- Amex PRG NPSL[3-14, bd 91]
- Sallie Mae MC $8000[1-14]
- Chase Freedom $4700[1-14]
- Discover It $2750[8-13]
- BoA UCF Alumni Cash Rewards $5000 [3-15]
- GM BuyPower WEMC $5000[9-14]
- Wells Fargo Propel 365 Amex $7000[4-14]
- Barclaycard Arrival WEMC $7000[3-14]
- BoA Better Balance $3000[2-15]
In my sockdrawer: Amex BCE $1000[10-13, bd 91], OCCU Duck $10000 [11-13], The Sportsman's Guide Visa $8000[8-14], Chase Slate $4000 [9-14]Delta Gold Amex $2000 [2-15 bd 91], Diners Club MC $20000 [10-14] Commerce Bank Visa $2000 [3-15] Citi Double Cash $1000 [3-15]
Total CL: $90450