Reply
Blogger
Posts: 3,330
Registered: ‎10-19-2012
0

Is total balance a FICO scoring factor?

[ Edited ]

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? 

Moderator
Posts: 22,406
Registered: ‎01-17-2008
0

Re: Is total balance a FICO scoring factor?

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.

 

 

Blogger
Posts: 3,330
Registered: ‎10-19-2012
0

Re: Is total balance a FICO scoring factor?

Yup I meant 10% total utilization in both cases.

Moderator
Posts: 22,406
Registered: ‎01-17-2008
0

Re: Is total balance a FICO scoring factor?

Regular Contributor
Posts: 135
Registered: ‎10-03-2011
0

Re: Is total balance a FICO scoring factor?

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.

Copyright ©2001-2015 Fair Isaac Corporation. All rights reserved.   | Terms of Use | Privacy Policy | Sitemap

IMPORTANT INFORMATION: All FICO® Score products made available on myFICO.com include a FICO® Score 8, along with additional FICO® Score versions based on Experian or Equifax data (additional FICO® Score versions based on TransUnion data are not currently available on myFICO.com). Your lender or insurer may use a different FICO® Score than the versions you receive from myFICO, or another type of credit score altogether. Learn more

FICO, myFICO, Score Watch, The score lenders use, and The Score That Matters are trademarks or registered trademarks of Fair Isaac Corporation. Equifax Credit Report is a trademark of Equifax, Inc. and its affiliated companies. Many factors affect your FICO Score and the interest rates you may receive. Fair Isaac is not a credit repair organization as defined under federal or state law, including the Credit Repair Organizations Act. Fair Isaac does not provide "credit repair" services or advice or assistance regarding "rebuilding" or "improving" your credit record, credit history or credit rating. FTC's website on credit.