regarding how they score our credits, my question is : I know that if you owe above 50 or %60 of upur credit limit, they drop your score significantly, right? I want to know is it has any ratio factor to how much is you limit or not? In other words, if I have a Visa Card with credit limit of only $300 and my balance on this card in $200 and I also letâ??s say I have another mastercard with credit limit of $10,000 and I own on this card $7000 Are these 2 consider same when their computer re-calculate my score? Inther words is $300 limit card balance is exactly as bad as $10,00 card limit or they include the real cash owing in calculation somehow? I mean owing $200 is not as bad as owing $7000 but do they drop my score in same way exactly?
All that matters is the credit utilization ratio- you want to keep it at least under 30% or preferably under 10% to improve your FICO scores. So, while owing $200 may not be as bad as owing $7K, it's negatively affecting your credit score just as much.
