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!
To answer the question properly, what are the credit limits of each card?
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
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
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.
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.
@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..
@allzero Thank you, exactly the info i was looking for!