Is it true that you should keep your credit card debt to ratio @ 35% for the best fico score result?

Question

Is it true that you should keep your credit card debt to ratio @ 35% for the best fico score result?

Answer 1

Actually it needs to be under 30% total usage.

This is calculated by dividing yout total debt into your total credit, so if you have 5 credit cards with $5,000.00 limits for a total of $25,000.00 with a balance of $7,400.00 your total usage would be 29.6% and you would be fine.

But if you closed 2 of those cards and reduced your total limit to $15,000.00 with the same $7,400.00 balance your now at 49.33% and your credit takes a hit.

You take your first hit at 30%, second at 50% and third at 90%.

Answer 2

Actually higher credit limits with balances being paid off each month is best for your credit score.