I heard that with the new FICO model, they want you to spend ten percent or less of your credit limit to keep your scores from dropping.
I recently applied for a second credit card, one with four thousand dollars credit limit. My current credit card, the one with four hundred dollars is reported to the bureaus on the last business day of the month, while the one with the four thousand dollars is reported on the 23rd of the month.
I am likely to spend 99 % of my credit on the $400 card, but since the one with the $4,000 is with CareCredit, I only spent $430 in all, and don't plan to use it any time soon.
How will having one card reported as having a high balance, and another card having a low balance affect my score on a monthly basis if it is currently hovering around 694 points?