- My Forums
- Tiger Rant
- LSU Recruiting
- SEC Rant
- Saints Talk
- Pelicans Talk
- More Sports Board
- Fantasy Sports
- Golf Board
- Soccer Board
- O-T Lounge
- Tech Board
- Home/Garden Board
- Outdoor Board
- Health/Fitness Board
- Movie/TV Board
- Book Board
- Music Board
- Political Talk
- Money Talk
- Fark Board
- Gaming Board
- Travel Board
- Food/Drink Board
- Ticket Exchange
- TD Help Board
Customize My Forums- View All Forums
- Show Left Links
- Topic Sort Options
- Trending Topics
- Recent Topics
- Active Topics
Started By
Message
% of Credit limit to use each month?
Posted on 5/26/11 at 2:09 pm
Posted on 5/26/11 at 2:09 pm
I have been using my creidt card for travel expenses and paying it off each month. I have been using about 50% of my credit limit each month. I thought this was good but i recently was told that you don't want to use more than around 30%. How big of a deal is this? I always have the funds on a debit card but choose to use the credit card thinking that it will help me build some credit. TIA
4
Posted on 5/26/11 at 2:25 pm to geauxtigers12
Who told you that? Go punch them in the face for spouting nonsense. Completely arbitrary number with no basis for reason.
Posted on 5/26/11 at 3:12 pm to kfizzle85
quote:
Who told you that?
It was actually a friend of mine who work in lending. his reason was that if you go over that number that it will lower your fico score.
Posted on 5/26/11 at 3:13 pm to geauxtigers12
Banker in BR told me not to let my credit get above 50% of my limit to help my credit
Posted on 5/26/11 at 3:14 pm to geauxtigers12
It sounds like an arbitrary rule of thumb someone like Suze Orman or whatshisname made up and every one parrots. I don't think it makes a difference.
Posted on 5/26/11 at 3:20 pm to kfizzle85
quote:
I don't think it makes a difference.
It does make a difference for credit agencies. I got a few minor deductions for this on my last report. Seems kinda wierd that you would get a hit if you pay it off every month, but...
This post was edited on 5/26/11 at 3:21 pm
Posted on 5/26/11 at 3:23 pm to C
Using it and paying it off isn't bad. That guy is just an idiot.
However, when you go to get your credit checked (loan), you need to make sure it is paid off.
Actually, using a lot of your credit limit is probably a good thing because it will encourage your cards to boost their limit, giving you a better score.
However, when you go to get your credit checked (loan), you need to make sure it is paid off.
Actually, using a lot of your credit limit is probably a good thing because it will encourage your cards to boost their limit, giving you a better score.
Posted on 5/26/11 at 3:28 pm to C
You got a few minor deductions that say they are explicitly due to the fact that you are using more than 30% or your total credit?
Posted on 5/26/11 at 3:30 pm to geauxtigers12
He probably meant not to carry a balance more than 50% of your limit.
Posted on 5/26/11 at 3:32 pm to kfizzle85
quote:
You got a few minor deductions that say they are explicitly due to the fact that you are using more than 30% or your total credit?
Yes, or something like that. I'll find the report when i get home and give you the exact quote.
Posted on 5/26/11 at 3:36 pm to C
Yes, I would like to see that. If that is the case then I stand corrected. I don't see how it would impact your score in the long-run, assuming you paid it back down every month like this guy does.
Posted on 5/26/11 at 3:55 pm to kfizzle85
Mint sends me alerts all the time about going over 30% of my available credit, even though I pay my balances off every month... 
Posted on 5/26/11 at 3:58 pm to sneakytiger
Well, mine is well in excess of 30% of available credit and has been for like 9 months, and it didn't have an impact on my credit score (at least not anything more than negligible) when I went and bought a car 6 months ago. 
IDK it just sounds arbitrary to me.
IDK it just sounds arbitrary to me.Posted on 5/26/11 at 9:22 pm to kfizzle85
quote:
(at least not anything more than negligible)
I have a very good credit score so it wasn't a huge hit, but it was a remark. But I could not find it when I came home. I think I shred it. I do not recall exactly what % the credit report quoted. At the time I had just charged a large amount (or my wife did) for furniture and a ski trip so it was likely well over 50% when they ran the report.
Posted on 5/26/11 at 10:09 pm to geauxtigers12
This is correct in principle, although I do not know the exact percent at which it becomes a problem. I put pretty much everything on my rewards credit card, but I also pay it off in full each month.
However, the credit report does not show the zero balance carred over. It shows the amount spent as of the monthly statement (before I get a chance to pay off). It has been noted as a deficiency on prior credit score reports. Since the credit score is still high, I have not put much thought into it.
However, the credit report does not show the zero balance carred over. It shows the amount spent as of the monthly statement (before I get a chance to pay off). It has been noted as a deficiency on prior credit score reports. Since the credit score is still high, I have not put much thought into it.
Posted on 5/27/11 at 6:55 am to Bayou Tiger
If your that concerned about a balance in a point of time on your credit report, you can make multiple payments to your credit card during the month. Or ask credit card issuer for increase in limit.
Don't know how much this will impact credit score.
Don't know how much this will impact credit score.
Posted on 5/27/11 at 8:02 am to kfizzle85
quote:
Yes, I would like to see that. If that is the case then I stand corrected. I don't see how it would impact your score in the long-run, assuming you paid it back down every month like this guy does.
I think it's what hidden flask said, you need to make sure your balance is paid off when going to get a loan. What you owe/your credit availability at the time of securing your loan seems like it would definitely be a factor.
This post was edited on 5/27/11 at 8:03 am
Page 1 of 1
Popular
Back to top
Follow TigerDroppings for LSU Football News