Does anyone know if FICO scores are only based on a total debt usage ratio or if spreading across accounts makes a difference? example: Have 2 credit cards w/ $10K limit. Would FICO be the same with $5K balance on each compared to a $10K balance on one and $0 on the other?
This is a very good question. I would like to know the answer as well. I suspect that it hurts more if any card is maxed versus a 50% balance on each one. Some people say otherwise. I just wish we knew the answer.
There are alot of variables that also apply but I can tell you that my own personal experence has been having one account over 50% I took a slight ding having more than one account over 50% I took a huge ding. Seems the best place is to have accounts under 30% With not all of your cards in play at the same time.
YMMV I have 2 "STORE" (RETAIL) accounts...I maxed WAL*MART store card (0.00%)...BUT I also have a SEARS card...I was under 20% used for both TOGETHER...BUT I GOT THE "EXCESSIVE RETAIL BALANCE" GARBAGE FROM THE CRA...(EQUIFAX)
I can tell you that when I "maxxed" out my Cap.1 card temporarily to get the real credit limit shown on the CRAs that for that month in particular, I lost nearly 50 points down to like 630-640 then when I paid if off the next month, I got back the 50 points plus an additional 15 points. I hate having to do that, but the card is 6 years old and closing it would kill my score
