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I was under the impression that having a higher ratio of “credit available to the current balance” is desirable and would result in a higher score.

However, I was told by one of my bank’s employees that having more credit available will result in a lower score, no matter what your current balance is. Can someone clarify?

2 Thoughts on Does a higher amount of credit correlate to a lower score?
  1. Reply
    November 11, 2011 at 10:11 am

    Your bank employee simply doe’s not know what they are talking about.

    Credit scores are based on the following factors period;

    1. Payment history 35%
    2. Time in bureau 15%
    3. Types of credit 10%
    4. New credit 10%
    5. Debt to credit ratio 30%

    As long as your debt to credit ratio is under 30% your fine as far as score goes and the lower the better. Mine is between 2% & 3% and every score I have is over 800.

    Credit scores have nothing to do with risk that is a completely different matter.

  2. Reply
    Watch IT!
    November 11, 2011 at 10:24 am

    Take the high balances, divide these by the min pmt. This results in term. Term times 50. If late pay, take 30 points for each month. Total Inquiries less inquires over 30 days old. Add 10 times number of months of oldest trade line. Number times 90 the mortgages paid as agreed. Repossession is minus 400 let it stand that if time in bureau is more than 240 months reports take even integers of trade lines paid as agree times 25.

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