No. of Recommendations: 0
How is credit utilization ratio calculated? My understanding is that both your overall ratio (total debt / total line of credit) and the ratio per account/card is evaluated. However is this done real-time, i.e. at the time that you ask for your credit score to be generated or are there records kept per month?

I hit 75% utilization of my primary credit card yesterday so I called and requested a credit line increase from $8,000 to $20,000 which brings my utilization back down to under 50%. I assume the next time I ask for a credit score to be generated it may or may not catch this peak spending. But if it does it will compare it against the current credit limit ($20,000) not the one that existed at the time of the peak spending ($8,000).

I'm more interested in replies about whether my understanding of the utilization ratio calculation are correct than about whether one should care what the end result (credit score) is.
Print the post  


UGC Disclosure Notice Regarding Credit Card Posts
Community board discussions about credit cards are not provided or commissioned by banks who may have advertising relationships with The Motley Fool. Responses have not been reviewed, approved or otherwise endorsed by the bank advertiser. It is not the bank advertiser's responsibility to ensure all posts and/or questions are answered.
TMF Credit Center
The Motley Fool Credit Center arms you with real tools and simple messages, that will help you in every credit situation.
What was Your Dumbest Investment?
Share it with us -- and learn from others' stories of flubs.
When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Community Home
Speak Your Mind, Start Your Blog, Rate Your Stocks

Community Team Fools - who are those TMF's?
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and Glassdoor #1 Company to Work For 2015! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.