07-04-2013 08:20 AM - edited 07-04-2013 09:17 AM
It seems to be general consensus that utilization ratio is a factor, while total credit limit is not. What about total balance? Is there a difference in scores between someone who has $10k total balance on a total $100k limit and someone else who has $1k total balance on $10k total limit, everything else equal?
07-04-2013 08:47 AM
Total credit limit is not scored by FICO but it is a factor in determining your utilization. Individual and overall. So is total balance and individual balance.
On the one with a total of $100K limit their overall utilization would be 10% whereas the one with the 10K limit would also be 10% but on that card alone, if I am reading your question correctly. You would need the total limits and balances to figure overall.
07-04-2013 09:34 AM
07-04-2013 04:45 PM
They should be scored the same, but will look quite a bit different in manual review, and maybe in automated systems, since my guess is that income, credit usage, and history will look considerable different. It's hard to imagine a 10x difference in CL without the other factors being different.
I understand this is an academic exercise. It's just hard for me to believe that all else *could* be equal in the two profiles.