11-18-2012 01:19 AM
i have 1 credit card at 90% and 2 others at 80%. I recently applied for 2 credit cards. and have a limit of 8000 and 4000.
should i distribute the balances evenly so that all 5 CC have lower than 50 or at 50% and take a hit with "Too many Account With Balances".
or just leave them as they are.
11-18-2012 06:48 AM
The one at 90% is considered maxed out. You should be careful with that, sometime they will balance chase you down and drop the CL.
11-19-2012 12:12 PM
FairIsaac has not, to my knowlege, disclosed the respective weightings given to individ card utils and % with balance.
From anecdotal postings, it appears that % with balance is lower, so I would put more focus on maintaining individ card utils lower.
Aside from FICO scoring implications, extended higher % utils on cards are often a trigger for potential credit limit reductions by creditors.
Thus, maintaining high individ card utils might lead to future CL decreases, resulting in reduction of card balances not providing a reduction in % util on the card.