Kareen MillsFounder & CEO, Friendsgiving Live® · Most Influential Filipina ’23 🏆 Founder of the World’s Largest Friendsgiving Festival for Women | Angel | Keynote | Sugar Mommy™ Media | Psalm 25:1 ✞

What Goes Into My FICO 8 Score?

17 Jan 2024 · 1 min

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This content was created by Kareen Mills. This content was uploaded by Kareen Mills. This is a YouTube video titled "What Goes Into My FICO 8 Score?" (uploaded 2024-01-17). The excerpt is a single-speaker explanation (labeled SPEAKER A) about how credit utilization — the amounts you owe relative to total available credit — influences a FICO 8 score. The speaker explains that credit limits across multiple cards are considered together (example: $10,000 total limit), advises keeping utilization at 30% or less, and gives the concrete example of cycling about $3,000 per month and paying it off.

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Number 2 largest factor is the amounts that you owe. This is what we call the percentage utilization. For example, if you have a $10,000 access to credit cards, and I say that access to credit cards because of the fact that you could have 5 different credit cards with $2,000 each of credit limit, and your total access is $10,000. Your credit profile is not going to look at just the one card, it's going to look at everything as a whole, as your total access. So in this example, if you have 10% access to, let's say, credit cards, the secret sauce is that you need to owe 30% or less. So in this example, we have $10,000 access to credit cards. We need to just cycle $3,000 every month and pay it off every month.