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Frequent Contributor
Posts: 469
Registered: ‎03-05-2013
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Credit card usage question

[ Edited ]

I checked my Fico Score and it gave me the following message:

 

You've made heavy use of your available revolving credit.

 Ratio of your revolving balances to your credit limits
3%

For FICO High Achievers, this ratio is 7%, on average.

 

Your FICO score evaluates your revolving credit balances in relation to your credit limits on those accounts. In your case, this ratio of balances to credit limits is too high.

Keep this in mind: This credit usage ratio is one of the most important factors to your FICO score, so you should work on paying down your balances. Your FICO score looks at your total ratio of revolving debt, and also your ratio of revolving debt on your individual credit accounts. Therefore, consolidating or moving your debt from one account to another will usually not help your FICO score since the same total amount is owed.

 

I have over 40K in revolving credit. and I use less than 2K. I don't understand how that calculates to heavy usage. Especially since it most high fico earners use 7%. Should I be spending less on CCs? Any insight would be greatly appreciated.

Last App March 23, 2015. Gardening until November 25, 2015
Current Score: 766 EX 734 EQ 780 TU 6/30/2015Starting Score/Goal Score: 580s/780s across the board
Mega Contributor
Posts: 15,442
Registered: ‎04-09-2011
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Re: Credit card usage question


unc0mm0n1 wrote:

I checked my Fico Score and it gave me the following message:

 

You've made heavy use of your available revolving credit.

 Ratio of your revolving balances to your credit limits
3%

For FICO High Achievers, this ratio is 7%, on average.

 

Your FICO score evaluates your revolving credit balances in relation to your credit limits on those accounts. In your case, this ratio of balances to credit limits is too high.

Keep this in mind: This credit usage ratio is one of the most important factors to your FICO score, so you should work on paying down your balances. Your FICO score looks at your total ratio of revolving debt, and also your ratio of revolving debt on your individual credit accounts. Therefore, consolidating or moving your debt from one account to another will usually not help your FICO score since the same total amount is owed.

 

I have over 40K in revolving credit. and I use less than 2K. I don't understand how that calculates to heavy usage. Especially since it most high fico earners use 7%. Should I be spending less on CCs? Any insight would be greatly appreciated.


Is this from a score power repory here???

 

Thats a little off. Smiley Indifferent




Silver Spade Garden Club Member - Last App 12/16/13 - Looking for a clean slate NO INQ's / Diamond Inspired!
Starting Score:
EX (PLUS) 583 EQ FICO 565 TU FICO 590 3/15/2011 / Goal Scores: 720
Current Score: EX FICO (PSECU) 671 (myFICO) N/A / EQ FICO 679 / TU08 FICO 678 / TU VS 706 3/6/2014
Moderator Emeritus
Posts: 32,869
Registered: ‎08-04-2007
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Re: Credit card usage question

That negative FICO scoring code encompasses several items outside of your overall util. I believe it includes individual util. For example you could still get dinged with low util on all CCs but high on one. I think it also includes whether or not an individual TL is reporting as maxed which tends to ding extra. OP, are your scores high? I see FAKOs( I assume) and your util could be high in relation to others within your scoring bucket. Your comment is an indicator of that.

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