I had to my credit card to pay for denist appoinments and tuition. My credit card was always at $0-$200 and now its almost at its max. Is my credit score doomed because my credit card is so close to it max limit and I can't get it back to 0 for a while as I still owe more tutition?
2006-09-08 11:00:00 · 12 answers · asked by Sheilden_64 2 in Business & Finance ➔ Credit
If this is the only credit card you have, I would not be concerned about it being at the max for a while. Just try to pay it down as soon as you can. I would not recommend you attempt getting more credit though. The more credit you request, the lower the score goes. Each time you apply for credit, it sends up a red flag to companies that you may be biting off more than you can financially handle.
For great credit advice, go to Dave Ramsey's site or listen to his radio show on the air live, or by hearing the past shows from his archives. Dave has been in terrible debt and is now teaching others what he has learned. You can get some good advice there on credit that will help you the rest of your life. It is information that many of us baby boomers wish someone would have shared with us when we were much younger. I hope this is of help to you.
Here's the link:
http://www.daveramsey.com
2006-09-08 11:16:41 · answer #1 · answered by son-shine 4 · 0⤊ 0⤋
any balance over 50% of the high credit limit (as long as the account is revolving which means you can pay off the balance and then add more to it) will lower your score. If its an installment loan such as a first mortgage or auto then it wont affect your score. If that's the only revolving account on your credit then you can add another credit card and keep the balance low. Other things that affect your score: late dates, collections, liens, judgments, delinquent accounts, and inquiries, and too many revolving accounts. Your score changes every day and differs between credit bureaus. If you have none of the things I listed as affecting your score than the high balance prob isn't affecting your score too much.
I see about 50-75 credit reports a day. The ones that have the highest scores have 2-3 revolving accounts with balances of less than 50$ of high credit limit (credit cards, home equity, etc) 2-3 installment loans (1st mortgage, auto, etc), with no lates and few inquiries.
Having little to no credit will also give you a low score if one at all.
Remember your score changes all the time and is not doomed because right now you have a credit card with a high balance.
2006-09-08 11:11:53 · answer #2 · answered by Kristin Pregnant with #4 6 · 1⤊ 0⤋
lt's not doomed, but it took a bit of a hit. If your balance goes above 30% of your credit limit, your credit score will drop some. Once you get the balance below 30%, your credit score will come back up.
2006-09-08 11:06:51 · answer #3 · answered by Anonymous · 0⤊ 0⤋
Your credit score is not doomed. There are lots of factors in credit score, and having a high revolving balance for a short period will not be an issue long-term.
2006-09-08 11:05:16 · answer #4 · answered by Brian L 7 · 1⤊ 0⤋
Using almost all of your credit line can definitely hurt your score, however, if you are in good shape with the other factors of your fico score then you are not doomed.
For a clear and simplified explanation of what affects your score, see "Fico Breakdown: How Your Credit Score Is Calculated" at
http://finance-girl.blogspot.com/2006/09...
2006-09-08 16:14:43 · answer #5 · answered by Anonymous · 0⤊ 0⤋
Yes it can, it is a larger debt that you owe and companies look at it, even if you pay on it. Pay more than the minimum, it helps. Try also to keep it to one card, when you have multiple that is more financial responsibilities too. The more you owe and the more people you owe, the lower you go.
2006-09-08 11:03:45 · answer #6 · answered by lorihurley03 3 · 0⤊ 0⤋
Being denied of the mastercard software gained't damage your credit status. yet imagine about why you've been denied. the rationalization being that your credit status did not meet the credit employer's wide-spread for issuing mastercard. attempt to adhere to on the commercial company you've been banking for decades. once you've solid list of under no circumstances bouncing exams or non-sufficient-fund project, your economic company likely problem you the cardboard. additionally they look at your bank account universal stability and no matter if you've a mark downs or CD's with the commercial company. So, that's no longer purely your credit status they overview to guage the credit worthiness of a plausible card holder. solid success!
2016-11-06 22:23:28 · answer #7 · answered by bulman 4 · 0⤊ 0⤋
maxing out your cards will hurt your credit score and cripple your debt to income ratio. the only way to improve it is to get a credit increase or to pay the card down.
2006-09-08 15:25:10 · answer #8 · answered by bella_4624_19 4 · 0⤊ 0⤋
Don't worry, once you're able to pay it down, your score will be lowered in 30 days. Hopefully, you are not trying to apply for credit now.
2006-09-08 11:03:24 · answer #9 · answered by L.A.Blues 2 · 0⤊ 0⤋
So long as you make timely payments and do not exceed your credit line, you are probably actually improving your credit history.
2006-09-08 11:08:56 · answer #10 · answered by Anonymous · 0⤊ 0⤋