I cannot find this in the search - what is the maximum % of a CC's avail credit used that doesn't look unfavorable on a CRA?
When scored by FICO, for a given ratio of total debt to total available credit, is there any difference in FICO to having the balance all on a few cards near their limits, or spread across more cards with less per card? I would not suggest maintaining significant balances at normal purchase rates, as these can generally be raised arbitrarily. Only keep balances where the rate is locked in until paid, such as is often the case for a balance transfer.
KEEP IN MIND--F.I.C.O. DOESN'T PAY THE BILLS!!! 0.00% @ 90% to save paying 15.99% or 19.99% NO BRAINER!!!
I need to clarify the question - at what % utilization of a credit limit does a FICO score start to take hits? I have heard that 30% is the max that should be used on a particular card, but does this apply to HELOC's? If the draw amount is close to the limit, does it score negatively like a CC, or more like a mortgage?
It is not clear to me that FICO looks at particular cards' debt to credit line ratios, but I have not done a controlled experiment. I have high scores, so it hasn't been an issue, and I will take the cash over FICO brownie points anyday.
I agree with ontrack. Unless you're getting ready to make a major purchase, like a house, don't worry about the FICO. You need to try to maximize your wealth, and you don't build wealth paying more interest just to raise a score.
On PrivacyGuard, one of the things they list is how many cards have usage of 50% or more of credit limit. That would lead me to believe that 50% is some sort of threshold.
If your balances being carried are all on 2 or 3 cards locked in by BT at 3% til paid, and all other cards are paid in full each month, FICO doesn't matter. Any CC company raising your rates or cutting your credit will only hurt their future business.
