Utilization and Fico Scores Question

[Anonymous]

I am confused on how credit limits affect FICO scores.

If I have 5 credit cards with $1000 limit each and utilize only 1-9%, would it improves my score exactly as if I had 5 credit cards with $5000 limit each and utilized 1-9%.

Or do the higher credit limits affect my score somehow?

If this has been answered, can you point me in the right direction?

Thanks!

[Anonymous]

Yes- exactly
It is all about UTL overall and on individual accts not the $ amounts.

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@Anonymous wrote:

I am confused on how credit limits affect FICO scores.

If I have 5 credit cards with $1000 limit each and utilize only 1-9%, would it improves my score exactly as if I had 5 credit cards with $5000 limit each and utilized 1-9%.

Or do the higher credit limits affect my score somehow?

If this has been answered, can you point me in the right direction?

Thanks!

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[MidnightVoice]

Remember, FICO does not factor in your income - it does not know.  So utilization % is a major factor in your score.

Hence my slow movement towards increasing my CLs - it saves me having to pay money early to keep my util low, and allows me to have the full balances reported without a decrease in score.  Then I PIF to avoid finance charges.

And I have a reson for wanting to keep my score high - I might be looking for a loan next year

Message Edited by MidnightVoice on 10-30-2007 10:15 AM