03-26-2009 02:55 PM
03-26-2009 03:09 PM
I also don't quite understand "dormant" if they have a balance.
However, yes all balances are totaled and then divided against your total Credit Limits to arrive at your percentage of utilization. However, even if your "overall" utilization is 30%, but you have certain cards at 50% or more, these will ding your score.
The balance/use things that affect your score are : percentage of utilization (amount debt in relation to credit limits), number of accounts with a balance, total dollar amount of debt.
Other things that affect your credit in this area is your payments. Not just if they are paid on time, but if you pay minimums only. Paying minimums only potentially flags that you are maxed out (income wise) and cannot handle more debt/credit.
So, 30% is not too terrible, but not good, especially when it represents around $10,000 in revolving debt. As the dollar amount increases, it can begin to outweight, as a factor, more so than percentage of utilization.
03-26-2009 03:21 PM
03-26-2009 03:35 PM
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.
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.