An easy question?

[vanillabean]

Scenario #1: 4 of 7 cards with balances, the overall util is low.

Scenario #2: 2 of 7 cards with balances, but util is 15% higher.

If you were to choose between these two options, which scenario do you think would yield a higher EQ FICO?

It's not a trick question, and there are no hidden surprises such as lates of any kind or maxed-out cards. It's as plain vanilla as can be imagined, so while it's a given that every person's situation is different, that's not the answer I'm looking for. But if you do see a specific variable that may come into play, don't hesitate to bring it up!

[Revelate]

Personally if I cared enough to ask the question, I'd spend the ~40 bucks for two pulls to find out over the next few months .  Though since you bring it up I may try something similar with my three cards in the next two months, though one is about to hit the six month mark and that introduces a new variable potentially.

I think the only possible additional variable, is there might be a per-card utilization calculation as well that some people have pontificated: how you split that additional 15% util over the remaining two cards might be a factor, but it probably follows the similar thresholds that people have anecdotally found for aggregate utilization (10% / 30% / etc.).

[GregB]

NOT an easy question.

Best thing to determine importance is to go to FICO report and look at factors helping and hurting your score. Is "Too many accounts with balances" on there? How many accounts, not CC accounts, show on number of accounts with balances? How many total accounts?

[RobertEG]

FICO has clearly stated that it scores on overall util, individ card util, and percent with balance.

Your question would be "easy" if we knew the algorithm and its weightings, but we dont.

As  percent of cards with balances goes down, while at the same time overall util goes up, then the remaining cards would necessarily have to have higher % util than the overall in order to make the overall util go up.  What is more important, % with balance, overall % util, or individ card util?

4 out of 7 w/ bal         A                                                               B                                             

7% overall                                  3 maxed out                               all<10%                   

                    CL         Bal  1         Indiv Util                          Bal 2         Indiv Util                  

Card 1          300        300           100%                                                  0%                          

Card 2          3000      800           27%                                   200           7%                          

Card 3          5000                      0%                                      350           7%                          

Card 4          500        500           100%                                                  0%                          

Card 5          10000                    0%                                      800           8%                          

Card 6          1000      1000         100%                                                  0%                          

Card 7          15000                    0%                                    1250           8%                          

Total             34800    2600         7%                      2600           7%                         

2 out of 7 w/ bal         A                                                  B                                                          C             

22% overall                     2 maxed                                            2>22%                     

                    CL         Bal  1         Indiv Util                        Bal 2         Indiv Util                           Bal 3        Indiv Util

Card 1          300                        0%                                                      0%                                                  0%

Card 2          3000      3000       100%                                                   0%                                                   0%

Card 3          5000      4656         93%                                                   0%                              5000         100%

Card 4          500                        0%                                                      0%                                                   0%

Card 5          10000                    0%                                     2656         27%                            2656            27%

Card 6          1000                      0%                                                      0%                                                  0%

Card 7          15000                    0%                                     5000         33%                                                0%

Total             34800    7656         22%                     7656         22%                 7656         22%

[vanillabean]

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@RobertEG wrote:

What is more important, % with balance, overall % util, or individ card util?

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As for the case in question, I think the former outweighs the latter two. 1.15 x a low util is still a low util, while 4 cards form a majority of the 7 cards, very different from a 2 card minority, and when it comes to the number of cards with balances, EQ will be all over you like a pitbull on a poodle. Yet DW's recent experience shows the scores are about the same. Something obvious is missing, and so absolute vs relative balances pop up for me like an old habit. When your credit limits are high, even a low overall util can indicate a considerable overall balance, so a 15% balance increase may bring you into an absolute balance danger zone. After all, one has to consider the potential means of the cardholder to be able to pay back the debt.