Balances on bankcards are too high compared with credit limits

VantageScore code numbers

Code numbers can differ by bureau and score version. The wording of the statement is what to match.

What puts this reason on your score

VantageScore defines bankcards as credit cards and charge cards from a bank. In 4.0, retail store cards have their own codes, such as 59 for retail card balances against limits. This code compares the total balance on your bankcards with their total limits. The 3.0 version lumps bankcards and other revolving accounts together.

Three cards with limits of $3,000, $4,000 and $5,000 add up to $12,000. Balances of $2,400, $3,200 and $3,000 total $8,600, about 72% of the limits. Paying the total down to $1,200 brings it to 10%.

What to check on your credit report

• The balance and limit on each bankcard as the bureau shows them, which can differ from what your card app shows today
• Your statement closing dates, since the statement balance is what usually gets reported
• Any card missing its limit

What you can do about it

• Pay balances down before the statement closing date, not only by the due date.
• Spread a payoff so no single card stays near its limit.
• Ask for a limit increase on a card you've had a while, and ask first whether the request uses a hard inquiry.

The free utilization planner can help with this step.

How soon a change can show

This code reads the most recently reported balances. Once the issuers report lower ones, a new VantageScore can reflect them, often within one billing cycle. On 4.0, lower balances that hold for months also help the paydown codes.

If you are applying for a mortgage

Card utilization is the lever most borrowers can pull before a mortgage credit pull. Time the paydown so the lower balances are on the reports before the lender orders credit, and don't run the cards back up before closing.

Guides that go deeper

• Credit utilization, explained with the mathCredit utilization is card balances divided by card limits. See the math per card and overall, what counts, and why last month's ratio stops mattering.
• Statement closing date vs. due date: which one sets your utilizationYour card usually reports your balance on the statement closing date, weeks before the due date. See the timeline, the math, and how to time payments.
• Is there a best credit utilization percentage?Everyone quotes a different utilization target: 30%, 10%, 1%. What FICO and VantageScore say, and how to pick a target for your situation.
• What a higher credit limit does to your scoreA higher limit lowers your utilization only if your balance stays put. How the math works, when the request costs a hard pull, and when to skip it.
• What your credit score reason codes are telling youReason codes list what held your score back the most, in order. What the common ones mean, which you can act on, and which to leave alone.