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Member
Posts: 6
Registered: ‎05-15-2007
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Will my FICO Score increase?

Hi Everyone
 
I have 2 credit cards. 1 is over the 35% limit threshold and the other is at 0%. Is it better to split half the money owed to both credit cards.
 
Thank You
Moderator Emeritus
Posts: 16,375
Registered: ‎03-12-2007
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Re: Will my FICO Score increase?



Smarty wrote:
Hi Everyone
 
I have 2 credit cards. 1 is over the 35% limit threshold and the other is at 0%. Is it better to split half the money owed to both credit cards.
 
Thank You


For max FICO points, it's best to have all of your revolving accounts reporting 1-9% util.
Credit Profile -
FICO 08 Scores (03-26-2015): EQ 814, EX 817, TU 822
All three scores were 850. Lost points for not having an open installment TL. So, BE WARNED!!!!!
Credit History: 26 years ~ AAoA: 13 years ~ Util: 1% ~ Inqs: EX 1, EQ 1

Credit Cards: Amex BCP ~ Amex Clear ~ Amex Platinum ~ Barclay Ring Mastercard ~ Chase Freedom Visa ~ CITI Dividend Platinum World Mastercard ~ FIA Fidelity Investment Platinum Visa ~ First Hawaiian Bank Gold Visa
Member
Posts: 6
Registered: ‎05-15-2007
0

Re: Will my FICO Score increase?

can you elaborate more?
 
Thank You
Moderator Emeritus
Posts: 16,375
Registered: ‎03-12-2007
0

Re: Will my FICO Score increase?



Smarty wrote:
can you elaborate more?
 
Thank You



Utilization Percentages

 

Utilization of revolving tradelines (i.e. CCs, overdraft protection and sometimes Heloc’s) accounts for 30% of your FICO scores. High util, over 50% can significantly lower your scores. A maxed-out or over-the-limit CC reporting will really TANK your scores.

To fully understand what Utilization percentages are, you must understand FICO scoring has two types of util percentage calculations, one that looks at the extent of utilization on individual revolving accounts and the other is cumulative and looks at the extent of utilization on all of your revolving accounts.

  

Example

 

Card 1: CL 5K, balance 1K = 20 percent (individual CC util)

Card 2: CL 3K, balance 800 =27 percent util (individual CC util)

Card 3: CL 2K, balance 100 = 5 percent util (individual CC util)

Add all three together and the cumulative UTIL is 19 percent. Not bad but again not ideal.

FYI, if your util reports < 50% a small increase in scores should occur, < 30% a little better and 1-9% is ideal. If all all of your revolving accounts report $0 it will not hurt your scores but again it's not ideal.

Credit Profile -
FICO 08 Scores (03-26-2015): EQ 814, EX 817, TU 822
All three scores were 850. Lost points for not having an open installment TL. So, BE WARNED!!!!!
Credit History: 26 years ~ AAoA: 13 years ~ Util: 1% ~ Inqs: EX 1, EQ 1

Credit Cards: Amex BCP ~ Amex Clear ~ Amex Platinum ~ Barclay Ring Mastercard ~ Chase Freedom Visa ~ CITI Dividend Platinum World Mastercard ~ FIA Fidelity Investment Platinum Visa ~ First Hawaiian Bank Gold Visa
Member
Posts: 6
Registered: ‎05-15-2007
0

Re: Will my FICO Score increase?

I got it!!
 
Thank you so much
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