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Subject:  Ever heard of the 30% rule? FICO Date:  8/21/2019  1:19 PM
Author:  rainphakir Number:  312593 of 312992

Me neither.

Apparently the FICO score system includes a rule of thumb "keep the amount of revolving debt below 30% of available credit".

The above article says, though, that the debt to credit ratio begins to affect the FICO well before the level reaches 30%. It mentions 7%.

But that the FICO will decrease more rapidly at 30%, and the rate will increase as the ratio increases.

How do people get a FICO of 850? If you want a score above 800, pay attention to this "rule of thumb"? Perhaps ask for a limit increase such that the amount of monthly charges (that I always pay off) is less than 7%?

The article also says 60% of Americans carry a balance on their credit cards. Therefore, 40% do NOT.

Therefore, those "average credit card debt" FUD stories are based on skewed numbers?

Some portion of that 60% carrying CC balances, is now over due on their CC payments, some are 90 days past due, and the article says the number that are 90 days past due has "ticked up".

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