QUESTION ON CREDIT CARD BALANCES

[ironchef]

Hi Guys, As you can see im new !

I am wondering if i can get advice on holding and increasing my scores.

At this time I have FICO TU(754)-EQ)703)&EX(700) 

My main question is with the Balances I show I thought were healthy mix to keep as it will hold to the under a total of 10% over all ?! I am Presnetly like 7% total... as Amex Hilton 3k has a bal of 200$, my Rose Gold Charge  SNL althoug paid off every mo it shows small bal now at 325.00$ and m Barclays 12k -0$ bal, Cap one 1k -0$bal, Saxs Charge 5k- 300.00$ Bal, 1 AU Amex EDP 10k -1100$ bal..

Can any one Let me know IF this is Correct balance theroy for my Credit ? 

[Anonymous]

First separate your cards into charge cards vs. credit cards.  Charge cards do not have a credit limit but rather the consumer is required to pay the statement balance in full.

The balances on your charge cards do not affect your revolving utilization (except in the very old Experian mortgage model).

With your credit cards you should want one card reporting a small positive balance.  That will prevent you from getting penalized for having all your credit cards at zero.  Aside from that one card, there is no scoring advantage to having multiple cards reporting a positive balance.

Your revolving utilization is your total revolving debt (but ignoring charge cards) divided by your total credit limit.  That should be kept under 8.99% for optimal score -- not 10%.  The utilization can be extremely low if you want (e.g. 0.2%).

Some cards are called "charge cards" but actually act like credit cards.  The folks in the CC forum can walk you through each card you have to confirm whether FICO would view it as a charge card or a true credit card.

[ironchef]

ok thank you for your help. as of right now I reviewed my total R.U and its at 7% although its a combo of 3 cards with a low balance and the others with 0% i suppose the end result to maintian and excel is to keep the R.U as you said 8.99% and under 

 which is where i am now!