@haapril wrote:
Okay hi. I read a section here from one of my fico scores and it states that whats helping my scores, which states Ratio of my revolving balances to my is 23%credit limit.
That's incorrect. The ratio is actually that your credit balances contribute to 30% of your score. As in your payment history contributes 35% to your score, length ofcredit history contributes to 15% of your score, etc. That's just some of the criteria that FICO uses to calculate your FICO score.
See this page for EVERYTHING that FICO uses in determining your score.
Now My target card has a balance of 163 with a limit of 200. Which was reported in NOV. Dec. report has not updated yet. Now, i know that 163 balance on my card is way more then 23%. Am I not understanding it right the ratio balance and credit limit. Does any one know the answer to this question?Thank u all for time and advice.
IDEALLY, you want your credit cards to report NO more than a 10% (or less) balance of your available credit.
So, if you have a $200 credit limit, you want to allow no more than a $20 balance to report on your CRs.
The formula is roughly $(credit limit) x .10 (10%) = ideal reporting balance. In this case $200 x .10 = $20.
Though, bear in mind that many here say that roughly 9% is the "FICO sweet spot."
