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34% credit ratio bad for one card?

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gbdavidx
New Visitor

34% credit ratio bad for one card?

34% credit ratio bad for one card?

 

something i don't totally understand about this game, it is supposed to be 10-20% per one card or all your cards?  if i take all my cards (3) my credit to debt is relatively low

Message 1 of 7
6 REPLIES 6
Slab
Frequent Contributor

Re: 34% credit ratio bad for one card?

Your utilization percentage is based on the total credit limits of all cards. Divide how much you owe by your total credit limits. It is best to maintain less tahn 10 % usage and on only one card.

Equifax FICO 781, Transunion FICO 821, Experian FICO 807,

810 goal on all three by 3-1-2015
Message 2 of 7
guiness56
Epic Contributor

Re: 34% credit ratio bad for one card?

Each card is individually scored by FICO, then overall.  If the card is maxed out or has a higher utilization you will be dinged for that.  If your overall is still low, you will be ok.

 

If this is your only card, try to bring it down to 9% or below.

Message 3 of 7
Volpes
Regular Contributor

Re: 34% credit ratio bad for one card?

This is important only if you will be loan/credit shopping in the next 3 months?

 

Not sure if I'm correct, other than the obvious:

Carry a balance is bad purely because you are paying interest

Some creditors submit your monthly payment amount to the credit bureau, not sure if this could be used against you in a manual credit review?

Message 4 of 7
gbdavidx
New Visitor

Re: 34% credit ratio bad for one card?

i have two cards, one is 1%, 1 is 21% and this one is at 33%

Message 5 of 7
guiness56
Epic Contributor

Re: 34% credit ratio bad for one card?


@Volpes wrote:

This is important only if you will be loan/credit shopping in the next 3 months?

 

Not sure if I'm correct, other than the obvious:

Carry a balance is bad purely because you are paying interest

Some creditors submit your monthly payment amount to the credit bureau, not sure if this could be used against you in a manual credit review?


It is mostly done for rebuilding because it is the fastest way to get an incease in score.  Others that are not rebuilding follow the same rules.  FICO does not like to see all cards reporting a 0 balance and will ding you for it.

 

You can carry a balance and not pay interest if it was paid off before the due date.

Message 6 of 7
guiness56
Epic Contributor

Re: 34% credit ratio bad for one card?


@gbdavidx wrote:

i have two cards, one is 1%, 1 is 21% and this one is at 33%


If your overall is relatively low, then the 34% isn't hurting that much.  You could stand to bring down the 2 higher ones a bit, if possible.

 

2 cards should report 0 and the other at 9% or below.  This would leave you with a very low overall utilization.

Message 7 of 7
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