what are the risks am taking by ALMOST maxing out my credit cards?

Question

they are about $100-$50 to the limit.

am not making minimum payments they usually ask for $20 i send them $50 -$100

Answer 1

First, you are living beyond your means, which is a horrible habit to get into. Second, you are wasting considerable amounts of money on interest, rather than all those things you want. Actually figure up how much you are wasting in interest and you may be motivated to end that habit fast. Third, you are just inching yourself closer to bankruptcy. You are filling your life with stuff, when really you need security.

Stop the meaningless purchases and pay off what you already owe. Pay the minimum balances on all but one card. Put as much of your income into paying that card each month as you can. Once it is paid off, do the same thing with the next and the next until your debt is gone. Once you have no debt, then you can consider buying those things you don't really need.

Answer 2

I'll just answer your question and not preach to you like the other responders.

1) When you approach your credit limit, you need to be aware that when the finance fees are added it may put you over your limit. On some cards, this can trigger penalties and higher interest rates. Be very carefull not to let this happen.

2) Credit score wise, they want to see your balance at about 25% of the credit limit. So if you have a $2000 limit, try to keep your balance to around $500. Once you run over that it will have a minor effect on your score, but once you have paid it off it will drop back in a couple months.

Answer 3

I maxed out 7 credit cards but all of them were discharged in bankruptcy. I had cards which were overlimit for months before I even declared bankruptcy. You're going to need credit counseling such that you can send one payment to these credit cards and work on knocking down the balances rather than living with overlimit fees and "default" interest rates of 30% or more.

Answer 4

Multiple risks exist. If your credit cards charge and annual fee or if you are late making the payment, your account will go overlimit and you will be charged an overlimit fee for as long as you are over the limit. Plus, it takes a long time to payoff a credit card if you make the minimum payment each month.

Answer 5

The worst is bad credit rating....no one will allow you to use credit for a long long time....if you are that over done with maxing out your cards find one of the good credit councilors and let them help you before it is too late...then use credit wisely from now on...starting right now! Don't use a credit card unless you just absolutely have too. Pay cash which means you may have to save up to get some things that you may want.

Answer 6

35% of your credit score is UTILIZATION, aka balance vs. limit. Being over about 40% of your limit hurts...which sucks!! You can leave a 25% buffer and STILL it dings your score.

Answer 7

Credit score wise, there is no risk.

The fees (everything from finance charges to annuals) will push you over your limit. It's downhill from there.