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Mon Oct 14, 2019, 07:04 PM

Credit scores and "credit usage"

When credit usage is calculated, is it done in aggregate across all credit cards, or on each individual card and then averaged?

That is, is the total of all balances divided into the total of all credit limits to determine the usage percent? Or, is a usage percent calced for each card first and then those individual percentages are averaged?
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Arrow 7 replies Author Time Post
Reply Credit scores and "credit usage" (Original post)
Beartracks Oct 2019 OP
FBaggins Oct 2019 #1
Beartracks Oct 2019 #6
FBaggins Oct 2019 #7
3Hotdogs Oct 2019 #2
customerserviceguy Oct 2019 #4
dixiegrrrrl Oct 2019 #5
customerserviceguy Oct 2019 #3

Response to Beartracks (Original post)

Mon Oct 14, 2019, 07:28 PM

1. Generally it's revolving debt divided by total available revolving credit

However - most people don't realize that you don't really have a single "score"... or even three scores (one for each credit bureau).

Banks often have their own unique twist on the scoring process that they pay the bureaus to produce for them. So whether they want to look at total credit utilization or that of specific revolving accounts is up to them.

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Response to FBaggins (Reply #1)

Wed Oct 16, 2019, 05:03 PM

6. Does revolving debt include "catalog" or "store" cards?

Obviously, a Capital One card in your wallet would be revolving credit. What about, say, a Fingerhut account or Nordstrom card?

Kind of also wondering if one's credit score is improved by the addition of a "store" card (because, hey! more credit capacity!) or diminished (because of the hard credit pull).

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Response to Beartracks (Reply #6)

Wed Oct 16, 2019, 07:27 PM

7. It does if you can keep making charges on the account

Itís possible to have store credit for a fixed amount over a given period (which would not count)... but if they give you a credit limit and you can keep using it for additional purchases at the store as you pay the debt down... itís a revolving account.

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Response to Beartracks (Original post)

Mon Oct 14, 2019, 07:48 PM

2. As per Dave Ramsey, if you have to put it on a credit card,

you can't afford it in the first place.

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Response to 3Hotdogs (Reply #2)

Mon Oct 14, 2019, 08:16 PM

4. Not necessarily

I pay all my balances in full every single month, but I run my spending through a card to get hotel points, frequent flier mileage, and sometimes cash back.

Generally, for most people, you've got a good point.

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Response to 3Hotdogs (Reply #2)

Mon Oct 14, 2019, 09:16 PM

5. That does not include paying balance each month use.


Credit cards are the way to go for online purchases, 'cause the card company will back you up in a charge dispute. As will Pay Pal, which requires a card to open an account.

Using a card to pay for plus 30 day items, which rack up interest payments, not good at all.

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Response to Beartracks (Original post)

Mon Oct 14, 2019, 08:14 PM

3. It's aggregated

Total outstanding balance divided by total credit limits.

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