Posted on: 15th Jun, 2010 12:41 am
What has more affect on my credit score, my overall debt/credit ratio or the debt/credit ratio for each account? i.e. If I'm able to get my overall debt/credit ratio to 30% or under, is that as beneficial to my score as getting each revolving account under 30%?
Hi ddchurch,
Welcome to this community :)
Debt to credit ratio or the credit utilization ratio is very important for your credit score. It is the ratio of your credit balance to your credit limit. Your credit score is calculated in combination of your overall credit utilization and individual credit utilization. Thus, both will affect your credit score.
Thanks,
Sandra
Welcome to this community :)
Debt to credit ratio or the credit utilization ratio is very important for your credit score. It is the ratio of your credit balance to your credit limit. Your credit score is calculated in combination of your overall credit utilization and individual credit utilization. Thus, both will affect your credit score.
Thanks,
Sandra
Do not really know the answer, but, logic tells me each account needs to be below 30% balance versus the line available.
Each account below 30% ratio is better than having one or two or more accounts over that even though the total ratio might be the same.
Because you lose points for ratios over 30% 0r 40%, it would seem you are losing points for ratios over that and not gaining points for some with zero balances at the expense of one or two accounts at high ratios.
Hopwever, logic may not prevail.
Each account below 30% ratio is better than having one or two or more accounts over that even though the total ratio might be the same.
Because you lose points for ratios over 30% 0r 40%, it would seem you are losing points for ratios over that and not gaining points for some with zero balances at the expense of one or two accounts at high ratios.
Hopwever, logic may not prevail.
