Helpful Resources

Community

Popular Discussions

Creditmagic Twitter

Credit on Facebook

Home

Credit Forum

Credit repair

What percentage or Credit Card limit & is it per card

Post reply Start a topic

Author

Message

Options

	Print this topic
	Invite a friend
	Email this topic

Bookmark online

	Add to del.icio.us
	Add to YahooMyWeb

Frustrated
Guest

Subject: What percentage or Credit Card limit & is it per card

Sat Sep 15, 2007 8:07 pm

I have 2 Questions.

1) I understand the I should keep my credit card usage to 25% or less of my total card limit, is that correct?

2) If I have multiple cards is that factored in, meaning if I have 2 Cards with a 1000 limit do I need to not use more than 250 on each card OR can I use 500 on ONE card?

Thanks

cajunbulldog

Joined: 30 Aug 2007
cajunbulldog's page
Posts: 35
Location: Louisiana

-10 Magic Points

Sat Sep 15, 2007 8:36 pm

You are talking about utilization. Keep it below 25% on each card and it is actually better below 10% on each card.
_________________
Cajunbulldog
Keeping an eye out for consumers.

Frustrated
Guest

Sat Sep 15, 2007 8:55 pm

Okay, 10% but I was told less than 20-25% actually hurts my score?

But it is based on each card that is good to know.

cajunbulldog

Joined: 30 Aug 2007
cajunbulldog's page
Posts: 35
Location: Louisiana

-10 Magic Points

Sun Sep 16, 2007 12:34 pm

Fico states utilization below 30% on each account and overall is a good factor for a person.
_________________
Cajunbulldog
Keeping an eye out for consumers.

Frustrated
Guest

Sun Sep 16, 2007 1:20 pm

Okay, but say I have a card with a 1K limit I should not charge more than $300, but supposed I purchase and item for $500 and pay it off right away or pay off half of it right away does that count against me? And by right away I mean as soon as it posts.

CreditGrantor

Joined: 01 Sep 2007
CreditGrantor's page
Posts: 32

2570 Magic Points

Sun Sep 16, 2007 1:34 pm

If you charge $500 and pay it off right away, then they wouldn't even have a chance to report to the bureaus that you have a $500 balance - they would be reporting your new statement amount, which includes the payment you made.

There is a spot on the tradeline that shows "High Credit" - which is the largest balance you ever had on the account. I'm not sure how FICO considers that. In my eyes, it would be a good thing to show that you were able to pay off a $500 charge.

CreditGrantor

Joined: 01 Sep 2007
CreditGrantor's page
Posts: 32

2570 Magic Points

Sun Sep 16, 2007 1:49 pm

Another thing to consider is that your credit report/score is like a "snapshot" at that particular point in time ...

If you are not trying to get new credit this month or next month, then go ahead and charge it. Take a few months to pay it off. (Your score may drop a few points, but if you're not applying anywhere then it doesn't matter). After a few months, you will get your balance back down below the 30% threshold, and your score will go back up. Then, by the time anyone else looks at your credit, they will get a "new picture" and your $500 charge won't be affecting it.

Quick Reply

Your Name

Subject

Message body


Page 1 of 1

Home|Contact Us|Terms of Services|Privacy Policy|RSS

* Disclosures:

Your personal details (name, email address and phone number) will be delivered to the company advertised on the Creditmagic after ve agreed to go for the counseling session by filling out the no-obligation form. However, it is your discretion to accept or reject their services.
Not all the creditors/debt collectors agree to trim down the outstanding balances, interests, and fees payable by the consumer.
Consumers working with the debt relief companies can still be sued by the creditors/collection agencies.
Debt relief services may have a diminishing effect on the creditworthiness of the consumer. The total outstanding balance may increase as the additional fees get accrued.
The overall amount saved by the consumer through the debt relief services is considered as taxable income by the IRS.