What are the details on using half your credit affecting on your credit score?

I know that when you have a balance that is over half your credit limit, it hurts your score. Question is, let%26#039;s say I have 3 cards that have a 10,000 limit and I have no balance on two, but 8,000 on one, will this hurt? Does credit constitute all available credit, so 8,000 out of 30,000 is OK and my credit will not suffer? I never understood the details. Thanks for the help.

What are the details on using half your credit affecting on your credit score?

1. The credit reporting agencies make random guesses for credit score

The credit reporting agencies do not arbitrarily decide on your credit score. In fact every loan, mortgage or credit card you take is closely monitored by the financial institution that provides it. The way you tackle your debt, repayment and interest rates is tracked by the company and sent to the credit rating agencies to calculate your credit score. The software used to calculate your credit score is FICO (Fair Issacs Corporation) after the people who designed it. It is a fairly complicated piece of software that decides on your credit score based on established parameters.

2. The credit reporting agencies are biased

No, not at all. No consideration whatsoever is given to factors like race, gender, nationality, marital status, or religion. It is your finances that matter. The feedback received by credit rating agencies from your banks, lenders etc. are the only things that matter. The idea is to establish your credit trustworthiness.

3. I have to pay heavy fees to credit reporting agencies to get my credit report

This is grossly untrue as the Fair Credit Reporting Act (FCRA) makes it mandatory for each of the credit reporting agencies to send a free copy of your credit report on your request each year. So, you can have a copy of your credit report absolutely free of cost once a year. If you require more than that you have to pay a small fee to the respective credit reporting agency. In fact, it is advised that you regularly check your credit report. It is indeed one of the best financial practices. Read more from: http://www.credit-card-gallery.com/artic...

What are the details on using half your credit affecting on your credit score?

This is the information that I%26#039;ve gotten from reading up on various websites like:

www.FTC.gov

www.MyFico.com

www.JRealEstate.blogspot.com (click on the credit education link)

www.Equifax.com

(I am sure the other 2 credit bureaus have the same info)

And that information actually says that if you have your balance below 30%to 33% of you limit on that card or account you have a better chance of having a better credit score. Once you go above that percentage your credit score suffers. This rule also applies to your total credit limit.

So if you have that one credit card with a limit of $10K and you have a total of $8K in debt, you do not have the best possible score you could have.

I would suggest spreading it $3K on one $3K on another and $2K on the last credit. This way you have it below that 30% rule on your 3 credit cards.