I know the optimal utilization is 25-30% of your total credit lines, but does it matter if its $1000 of $3300 or $30,000 of $110,000???? Does the total credit used matter to FICO?
My scores go higher the lower I go on the debt I owe... for instance if my total cl was 100k and I owed 20k... if I were to pay 10k of the 20k I would normally get a couple of points
I don't think that FICO cares how high your credit limits are, just the utilization percent of your credit limit. I think it only comes into play when lenders are looking at your credit, your debt to income ratios, and how much credit you have access to. When I applied for my mortgage, my broker suggested I have my credit limits lowered because they were too high for the amount of income I had. With the scoring system the mortgage broker used, I had access to too much credit, and that was lowering my score with them. I did lower my credit limits with several of my credit cards, and it did not change my FICO. My utilization percent was less than 5% after I lowered the limits. So, as far as FICO is concerned, I don't think it matters. Elle
