2007-09-07 16:01:51 · 5 answers · asked by blueskywoo819 3 in Business & Finance ➔ Credit
balance. they add it up plus a few other things and come up with their score no the so called now bogus credit score.
2007-09-07 16:05:10 · answer #1 · answered by Anonymous · 0⤊ 0⤋
What your creditors look at in determining your credit worthiness is the balance between both. Established credit accounts are paramount but too many is bad.
Major credit cards should never be run up to more that 35% - 40% of the credit limits. Store or E-Retailer Accounts are a no-no.
The ideal situation would be 2 or 3 major credit accounts, (Visa Master Card, etc.) at 30% balance, 1 or 2 major accounts, (Auto, home) and NO STORE CARDS. Also remember that inquiries by some credit issuers can adversely affect your credit as well. If you want to learn more about what affects your credit score and how, visit http://www.MyFico.com - This site is run by the Fair Issacs Co. They are the ones that developed the formula for the FICO score.
Hope this was a help.
2007-09-08 00:16:58 · answer #2 · answered by loancareer 3 · 0⤊ 0⤋
They look at the ratio between the credit available to you and teh credit you have actually used. You will be viewed most favorably if you don't go over 30-50% of your available credit limit.
See the link below - at the bottom of the page it explains this in detail.
Credut (FICO) scores are calculated based on a 100 point system, divided into 5 areas of major interest to lenders:
1. Paying your debt obligations on time = 35%
2. Your credit to debt ratio = 30%
3. Frequency of applications for new credit = 15%
4. What types of debt you are carrying, for example installment, bank credit, credit cards = 10%
5. How old your accounts are = 10%.
This means the two most important things you can do for free legal credit repair are (1) pay on time, and (2) keep your debt below 30-50% of the total credit avaialable to you.
2007-09-07 23:08:42 · answer #3 · answered by Sarah M 4 · 0⤊ 0⤋
Actually they use both. They make a ratio to see what percent of maxed-out you are at. They divide your outstanding credit debt by your available total credit limits. If it is too high they will reject you for a new card or for raising your credit limit on their card.
2007-09-07 23:05:42 · answer #4 · answered by Rich Z 7 · 0⤊ 0⤋
Both. The available credit is "available" and you could choose to use it at any time, even though you may currently have a zero balance.
2007-09-07 23:06:17 · answer #5 · answered by 88 2 · 0⤊ 0⤋