Interesting fact. FICO scores are not based on absolute numbers; they are calculated on percentages. For example as an extreme, if I only had $10 of available borrowing on a credit card each month - and only used $1 of it (10%) - and paid it off on time -
- I'd have a higher FICO score than somebody who had $20,000 available credit - used an average of $10,000 per month (50%) and paid it off on time.
|