topic Re: Fico Scores on multiply cards vs 1 in General Credit Topics

Fico Scores on multiply cards vs 1

slothy — Sat, 07 Sep 2019 01:33:52 GMT

Would a score be any different if lets say 5 cards each had 1k on them vs one card with 5k on it, while the other 4 were at 0 balance? Both on the score side and lendors (loans) look at report when applying for a loan. Not sure if it looks better only having 1 card with a balance vs it spread over multiple?

Thanks!

Re: Fico Scores on multiply cards vs 1

AllZero — Sat, 07 Sep 2019 01:38:24 GMT

To answer the question properly, what are the credit limits of each card?

Re: Fico Scores on multiply cards vs 1

slothy — Sat, 07 Sep 2019 01:42:41 GMT

lets say each card has a 10k limit.

scenario #1

card 1 - 5k on it

card 2 - 0

card 3 - 0

card 4 - 0

card 5 - 0

scenario #2

card 1 - 1k on it

card 2 - 1k on it

card 3 - 1k on it

card 4 - 1k on it

card 5 - 1k on it

Re: Fico Scores on multiply cards vs 1

slothy — Sat, 07 Sep 2019 01:51:16 GMT

reason for this maybe odd request? is that i'm paying off 5k of debt; not sure if its best to pay off some of each of the cards or pay some off and keep one high. Interest rates are about the same between the cards. The Scenario i added in above post is just a simplified version

Re: Fico Scores on multiply cards vs 1

Remedios — Sat, 07 Sep 2019 01:49:21 GMT

@slothy wrote:
Would a score be any different if lets say 5 cards each had 1k on them vs one card with 5k on it, while the other 4 were at 0 balance? Both on the score side and lendors (loans) look at report when applying for a loan. Not sure if it looks better only having 1 card with a balance vs it spread over multiple?

Thanks!

This cannot be accurately answered without knowing balances and limits.

As a general rule, maxed out card is never a good look especially for prolonged period of time

Also, all cards reporting balances without a noticeable pay down for extended period of time are not a good look, either.

So, it would be for the best if instead of hypothetical limits like you put below, you use the actual real life scenario

Re: Fico Scores on multiply cards vs 1

AllZero — Sat, 07 Sep 2019 01:53:04 GMT

For optimal FICO scoring, it's All Zero Except One. 8.9% or under utilization.

50% or more cards reporting a balance, you'll be penalized points.

Perhaps, AZE2 would be the best case scenario with utilization at 25% per each card.You'll want to be at 28.9% or under utilization.

Re: Fico Scores on multiply cards vs 1

AllZero — Sat, 07 Sep 2019 01:56:48 GMT

@slothy wrote:
Would a score be any different if lets say 5 cards each had 1k on them vs one card with 5k on it, while the other 4 were at 0 balance? Both on the score side and lendors (loans) look at report when applying for a loan. Not sure if it looks better only having 1 card with a balance vs it spread over multiple?

Thanks!

As far as what lenders want, I have no idea..

Re: Fico Scores on multiply cards vs 1

slothy — Sat, 07 Sep 2019 01:58:05 GMT

@allzero Thank you, exactly the info i was looking for!