Re: FICO score vs fiscal responsibility.

BreadWithSpam@[EMAIL PROTECTED]
 wrote:
> "Daniel T." <daniel_t@[EMAIL PROTECTED]
> writes:
> 
> > Carrie and Dolly are in nearly the same situation financially,
> > they both have 4 credit cards with interest rates of 10%, 15%,
> > 18% and 20% and a $10K limit on each card, also they both have
> > $8K in debt. However, Carrie has all of her debt on the card with
> > 10% interest, while Dolly has her debt distributed, $2K per card.
> > Again, Carrie is in the superior situation, she pays much less in
> > interest every month. However, Dolly gets the higher FICO.
> 
> Does she?  We know that FICO measures overall debt/credit ratio -
> in the aggregate - in which case they're identical.  Carrie hasn't
> used 100% of any of her lines of credit, as far as we know, she's
> not been late making any payments it nor violated that line's
> limits.  Are you certain that their credit scores will be
> substantially different?

http://preview.tinyurl.com/5fdqaj
"Please note that is is imperative to properly distribute outstanding 
balances over several credit lines or credit cards."

http://preview.tinyurl.com/6yhpjk
"Check Your Limits and Distribute Balances
 ....keep your card balances at 50 percent of that limit or below.  
Anything over 70 percent of your limit damages your credit score."

http://preview.tinyurl.com/6mjj5h
"A low balance on two cards is better than a high balance on one."

Such comments are all over the place. Will their scores be 
"substantially" different? We can't tell because the formula for 
determining score is secret. But we have been told that balance accounts 
for 30% of the score...

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