topic Re: debt to limit ratio in Understanding FICO® Scoring

debt to limit ratio

Anonymous — Thu, 04 Oct 2007 19:06:07 GMT

Hello to all , Does anyone know, what are the magic bracket breakdown for debt to limit ratio on credit cards debt to maximize the FICO score? For example what percentage rate of debt would not hurt my score (instead it may even help it) is it 50%? 35%? 10%? of the credit limit.

thanks in advance...

Re: debt to limit ratio

Anonymous — Thu, 04 Oct 2007 19:11:39 GMT

Hi pondering, welcome. This forum will provide you with a wealth of information for you. Regarding your question, it is a generally accepted axiom here, that a debt to limit ratio(called utilization), for maximum beneficial impact on your FICO scores are 1%-9% utilization. That's the practice I'm following and am thrilled with the results. Hope that answers your question.

Re: debt to limit ratio

Anonymous — Fri, 05 Oct 2007 15:17:41 GMT

Yes 1-9%

You will need to experiment on how many cards to report a balance to find the ideal number of "accounts with balances"

The break points for increasing the score are at 50%, 30% and 10% with the sweet spot 1-9%