Large Balance - Better to Carry over 3 cards or one card?

[tenbee]

Hello,

Which of the two scenarios will have the least negative effect on a FICO score?

1) Carrying a $10K balance on one card with a utilization of 90%.

2) Carrying a $10K balance on 3 cards to spread out the utilizations to 30-40% on each card.

I don't know a lot of information about the person's credit report... just wondering what's going to have the least negative impact on the FICO score. Their Eq FICO is 663. They need to carry $8K of the balance for the next 4 months. Please let me know if you need additional information - I can ask them.

[sarahlee7]

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@tenbee wrote:

Hello,

Which of the two scenarios will have the least negative effect on a FICO score?

1) Carrying a $10K balance on one card with a utilization of 90%.

2) Carrying a $10K balance on 3 cards to spread out the utilizations to 30-40% on each card.

I don't know a lot of information about the person's credit report... just wondering what's going to have the least negative impact on the FICO score. Their Eq FICO is 663. They need to carry $8K of the balance for the next 4 months. Please let me know if you need additional information - I can ask them.

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I would do 2 cards at 50%.  The fewer cards reporting a balance the better.

Absolutely in no way shape or form should an acct be allowed to carry 90% utilization.  That would be a red flag for every current and future creditor that may see that on the credit reports.

[Tonya-E]

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@sarahlee7 wrote:

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@tenbee wrote:

Hello,

Which of the two scenarios will have the least negative effect on a FICO score?

1) Carrying a $10K balance on one card with a utilization of 90%.

2) Carrying a $10K balance on 3 cards to spread out the utilizations to 30-40% on each card.

I don't know a lot of information about the person's credit report... just wondering what's going to have the least negative impact on the FICO score. Their Eq FICO is 663. They need to carry $8K of the balance for the next 4 months. Please let me know if you need additional information - I can ask them.

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I would do 2 cards at 50%.  The fewer cards reporting a balance the better.

Absolutely in no way shape or form should an acct be allowed to carry 90% utilization.  That would be a red flag for every current and future creditor that may see that on the credit reports.

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I agree with sarahlee7, do not do the 90% utilization on one card...

[vanillabean]

It depends on how many cards the person has. If seven, then three is less than half, and that's a good thing.

[sarahlee7]

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@Anonymous-own-fico wrote:

It depends on how many cards the person has. If seven, then three is less than half, and that's a good thing.

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.....and if the person has 7 cards then 2 cards reporting balances is also better than 3 cards reporting balances., until you get into the 'maxed out' range of an account, then 2 reporting lower utilization is better than that 1 card reporting 90%.