Credit Card Center Advertiser Disclosure†
07-28-2009 10:07 PM
My Equifax FICO score is 763. Trying to get the TransUnion score.
I have three major credit cards from three different companies. I've had each card for at least 20 years.
My total credit limit on these three accounts is $23,000. My total credit card debt is at about 29% of my total limits.
Just a little confused about some info I've read about how revolving accounts affect your score.
At most places I've read that FICO scores are based on the ratio of your total credit card debt to your total credit card limits. But in reading the forums here, it seems some folks promote keeping a card with a zero balance.
Just wondering does FICO also evaluate what percentage you have charged on your individual credit card accounts? And does having a zero balance on a card help your score?
Right now, two of my cards have balances that are roughly 50 percent of their respective limits.
On the third card -- the one with the highest credit limit – I have less than $100 charged. It could easily become a zero balance if I need it to.
Any advice or insight would be appreciated.
07-28-2009 10:19 PM
Welcome to the forums!
Considering your debt load, your EQ score is very good.
It is recommended in the threads to optimally have only one card report a balance and a small one at that. Many posters have experimented with this and I myself have seen signifcant increases from the strategy.
When you are able to reduce your debt to less than 9% or so of your total lines, that will be good. The next step would be to complete the debt removal and charge on all three cards. Pay off two of the three before the statements cut and let a small amount report on the third card. When its statement cuts, pay off the balance.
You will avoid finance charges and improve your FICO score.
You are on the right track---good luck!
07-29-2009 03:34 AM
Just to add, once your score is north of 760, there really isn't any practical advantage in trying to tweak your score. Any offers/rates you receive should be at the best terms. Going for a higher score is just a matter of personal satisfaction at that point, or for some, an exciting new hobby!
(Three major cc at 20+ years...enviable!)
Congrats, and welcome.
07-29-2009 05:01 AM
Having a zero balance on a CC means you are immune from the effects of AA and have total control of the CC.
These days TU like 0% util and I dont get smacked too much by EQ and EX for having it.
07-29-2009 08:37 AM
All Credit cards debt free, FICO score at 721 as of April this year, purchased some stuff at Best Buy in July using only half of my credit limit. This morning while using the automated system over the fone with Best Buy I accidentally pressed the wrong button immideatly increasing my limit from $1400 to $2000. Does this hinder my score because I have asked for an increase or does it help because now I am using a smaller percentage of my allowance.
07-29-2009 08:54 AM
Forums posts are not provided or commissioned by FICO. Forums posts have not been reviewed, approved or otherwise endorsed by FICO. It is not FICO's responsibility to ensure all posts and/or questions are answered.† Advertiser Disclosure: The listings that appear on myFICO are from companies from which myFICO receives compensation, which may impact how and where products appear on myFICO (including, for example, the order in which they appear). myFICO does not review or include all companies or all available products.
* For complete information, see the terms and conditions on the credit card issuer’s website. Once you click apply for this card, you will be directed to the issuer’s website where you may review the terms and conditions of the card before applying. While myFICO always strives to present the most accurate information, we show a summary to help you choose a product, not the full legal terms - and before applying you should understand the full terms of products as stated by the issuer itself.
IMPORTANT INFORMATION: All FICO® Score products made available on myFICO.com include a FICO® Score 8, along with additional FICO® Score versions. Your lender or insurer may use a different FICO® Score than the versions you receive from myFICO, or another type of credit score altogether. Learn more
FICO, myFICO, Score Watch, The score lenders use, and The Score That Matters are trademarks or registered trademarks of Fair Isaac Corporation. Equifax Credit Report is a trademark of Equifax, Inc. and its affiliated companies. Many factors affect your FICO Score and the interest rates you may receive. Fair Isaac is not a credit repair organization as defined under federal or state law, including the Credit Repair Organizations Act. Fair Isaac does not provide "credit repair" services or advice or assistance regarding "rebuilding" or "improving" your credit record, credit history or credit rating. FTC's website on credit.