using most my limit on credit cards

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corgee

Joined: 24 Sep 2009
corgee's page
Posts: 8

152 Magic Points

Subject: using most my limit on credit cards

Tue Oct 13, 2009 6:45 pm

How bad is it for my score to be using most my limit on my credit cards? I have 2 cards and I pay on time every month. Will this still drive my score down and how much?
I tried getting another no interest card to transfer the balance to but can't get approved for one.

What can I do in this situation?
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“..If they were jerks before they had money, they are simply jerks with a billion dollars.”
-WB
::corgee

Justin

Justin

Joined: 17 Jul 2006
Justin's page
Posts: 1093

25288 Magic Points

Wed Oct 14, 2009 7:14 am

Hi Corgee,

If you max out your credit card limit, it is not good for your credit score. Always try and keep the debt income ratio low. It is good that you always pay the bills on time. In this way at least there will be no negative items listed on the report. However, from now on, try not to max out your credit card and this will help boost your credit score. You will become eligible for a no interest credit card.
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All the Best Smile

Justin

fireyone

Joined: 26 Feb 2008
fireyone's page
Posts: 4121

1011 Magic Points

Wed Oct 14, 2009 10:42 am

Hello corgee and welcome. Most people would say never charge more than one third of any open credit on your credit card. I know with the tough economic times this has been really hard for people to do. I would try to get the balances paid down and then transfer the debts over. Is there any reason they gave your for having your credit card application turned down when you applied for the zero interest card? If not usually they will follow up with a letter stating the reasons they did not accept your application.
It also may be because companies are cutting down who all they extend credit to. Some only will take people with an excellent score and good credit report. There is so much credit card deliquncies out there that companies are being very careful.

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