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@Anonymous wrote:
Doesn't matter if SPK is 100% utilization because not done card by card. So 200k means you have $2,000 to play around with at the 1% ratio. $360 at 200k doesn't even make dent in your ratios and won't bother your score at all. Even with me at 70k, my balances can drop by $1500 or so and my score won't budge.
@Anonymous Plumber! Just to remind other folks, in your post above, you are responding to Frogman who wrote:
"I have around 200k of total limits. The limit on my SPG is only 1k. It reported with something like 360 dollars on it and it did not affect my credit score. I have around 1 percent total utilization."
Actually, you are not quite right (in the text highlighted in blue above). FICO does care about one's utilization considered card by card. That's called individual utilization and it can matter a lot. The thing is, the penalties for individual util begin much higher than they do for total utilization. For total util, there is no penalty until you cross over the 8.99% mark. But for individual utilization, the penalties for most people do not occur until the person hits 49%. There's been many case studies of zero penalty at (say) 44% -- though some profiles do apparently get a small penalty in the low 30s. (Most profiles apparently are fine.)
But once you start getting higher than 49%, there typically is a scoring penalty. And when a given card's util gets really high (92% say) the penalty is pretty sharp for all profiles, no exceptions. That's why it's good practice to keep each card below 89% for sure (almost no exceptions to that for anyone, even if it is an awesome 0% deal) and in most cases below 69% (there will still be a scoring penalty at 67% but it won't be as high as it will be at say 70%).
My most recent ex-girlfriend's FICO8s were in the 820s or higher and she has only 2 credit cards both with limits of $2000 (she CLDs them if they get increased, lolol). My current girlfriend's FICO8s are in the 820s with one bank card ($4000 limit) and one store card (Home Depot, $4000 limits) -- she also requests CLD if they get too high.
Credit limit has no effect ever on FICO score. Percentages only. As mentioned, higher limits let you float a bigger balance to maximize interest-free grace period, but getting a $50,000 limit card doesn't do you any good if you tend to max your cards out and pay the minimum each month.
One thing to note is that credit limits do track FICO score, not the other way around. My rebuild for the past 9 months shows how well my aggregate limit tracked my FICO score changes:
Of course, this will "top out" as my score plateaus this year, but still interesting to see the odd correlation.