11-02-2012 04:40 PM
I always have under 10% UTI reported every month
is it true that if I have 3 cards, to obtain the highest FICO score is better to
report a balance on 1 card and the other 2 cards report as $0 ?
now my question is like that
if I max out on the card I want Ito report a balance, but on the other 2 I have $0 balance
and I'm still under 10% UTI will that hurt my score? Or the FICO system doesn't look at card by card and only care about the UTI % ?
11-02-2012 04:42 PM
11-02-2012 07:05 PM
I believe you are referring to score hits from "too many accounts with balances". There seems to be a point for most people where having a balance over a certain percentage of their accounts results in a lower score than if the same amount of total debt was spread on fewer accounts. I can tell you that I lose several points when I have balances on 13 CC accounts instead of 12 out of my 25 total accounts. It is usually a few points for me.
I don't think this happens for 2 accounts but it might for 3 or 4 total accounts.
You can try and have all of them report a balance, pull a EQ FICO report and see if the "reason" of "too many accounts with balances" appears under "Items hurting your score". If it does, drop it to 2 and see if it helps.
It will NOT be the same for everyone.
11-02-2012 07:07 PM
If you hit max on the card, you might want to be careful about it. Sometimes they balance chase you as you pay it and sometimes they close to cut their losses.
11-02-2012 07:18 PM
If you do get to or near the maximum credit ceiling on one of your cards, it will not hurt long term IF you pay it off in full at the end of the first statement cut. However, you do NOT want to accrue or carry balances at or near the top as this indicates to the cc company you are having CASH FLOW problems and are very likely to DEFAULT.