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What holds weight on your scores?

If you owe $100 on your credit card and have a $1000 credit limit on it, your ratio is 10 percent.


Simple right? Not always! Here's where it gets tricky:

First of all, FICO doesn't view all account types as being equal. Revolving balances (e.g., credit cards and retail cards) tend to carry more weight than installment debt like a mortgage, auto loan and even a student loan when they consider the amounts that are owed. In other words your $5,000 credit card debt may carry more weight than you $25,000 auto loan. Interesting right! So, we totally recommend that you keep your balances strategically low. Check out this post that explains how this works.


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