Here is a question that has puzzled me for years.

According to FICO and all that I've read, as my credit 'utilization ratio' goes up, my point score goes down. If I have credit limits of $20,000 and I owe $4000 I'll score a fair number of points. If I owe $12000, I'll score lower points.

But what if I have credit limits of $60,000 and owe the same $12000?

And that brings up another question, regarding the downside of credit.

Do I score more or less points if I have a charge off of $10,000 or $5000?