Hi, about 6 months ago I applied for my first credit card and got approved. I made payments on time and never went over the limit. After about 3 months they increased my credit limit. But all of a sudden I lost my job because they had to move to another state. I started using my credit card to pay for bills after finishing everything from my savings account.
Im only $10 away from my credit limit and stopped using it since I dont want to go over. Would this still give me bad credit since im so close to my limit?
2007-01-12 17:34:48 · 10 answers · asked by piesw33ts 1 in Business & Finance ➔ Credit
not at all, just pay your payments on time!
2007-01-12 20:14:30 · answer #1 · answered by Meg 5 · 0⤊ 1⤋
Yes! A major factor in FICO scoring is what is called your credit "utilization" ratio. That is, the amount of credit you have outstanding vs. your credit limit. Here's why getting close to your limit is bad:
When people are not in financial difficulty, they generally pay off their credit cards monthly or leave a small balance. The closer you get to your limit demonstrates that your expenses are exceeding the amount you have the ability to pay off, and so this affects your score. If you charge more than 60% of your available credit limit, this will drop your score slightly. However, charge over 90%, and your score will tumble!
2007-01-13 06:01:26 · answer #2 · answered by Kevin K 3 · 0⤊ 0⤋
Do you have greater effective than one card, or did you purely bypass spendhappy, nopay on one card? you ought to inspect credit counseling or debt consolidation. they are in a position that can assist you you artwork out a somewhat low charge it relatively is agreed on with tips from the lenders (something the lenders won't do purely with you) and you. Then, permit no longer something cease you from protecting that charge schedule. Making those money on time ultimately facilitates sparkling your credit checklist to a component the place you could initiate over, and don't get credit taking part in cards once you initiate over. it is purely one massive bandaid in a manner, yet you're able to be able to ought to inspect getting a private loan, as long as your credit isn't THAT undesirable and pay the lenders off in my opinion from that, then make your money for the non-public loan purely. i do no longer understand if that's relatively obtainable, even with the indisputable fact that, in view which you do no longer say purely how undesirable your credit is.
2016-10-07 02:14:14 · answer #3 · answered by ? 4 · 0⤊ 0⤋
any card with a ba;ance over 50% will have a slight negative effect. But the effects will be erased as soon as the balance is cut below half. So if you aren't using your score now, it won't affect you as long as you pay it off. If you do need a car or home or another credit based loan, I would consider spreading the debt out over two cards, if you are sure that you can keep the balance of each card under 50%
2007-01-12 17:54:12 · answer #4 · answered by moonman 6 · 1⤊ 1⤋
This will most definitely not result in anything negative on your credit rating. The key to maintaining a positive rating is to continue to pay your minimum required by the due date and you'll be fine. This may begin to get tough for you as you're not working but if need be, borrow just enough from family or friends to meet the minimum until you get back on your feet with a new job.
Good luck...!!!
Cheers :)
2007-01-12 17:41:35 · answer #5 · answered by s g 2 · 0⤊ 1⤋
As long as you don't go over your limit, make at least your minimum payments, and make them on time, your credit won't be affected at all.
2007-01-12 17:39:19 · answer #6 · answered by Anonymous · 0⤊ 1⤋
it will show up on your report as a minor negative since you have a high credit debt to available credit ratio but as long as you don't go over your limit and make your payments on time there shouldn'tbe any major long term damage.
2007-01-12 17:43:43 · answer #7 · answered by QandA 3 · 1⤊ 1⤋
it won't hurt your credit unless you don't make the payment. if you don't make the payment, they will add a late fee. when they add the late fee, you will be over the limit. when you go over the limit, they add over the limit fee.this quickly gets out of control. do whatever you have to do to make that payment before you screw yourself.
2007-01-12 17:42:30 · answer #8 · answered by Jen 3 · 0⤊ 1⤋
Take a look at this information page http://www.youbigg.com/Credit-Cards.html it lists types of cards and information, it should also answer your question.
2007-01-15 10:44:20 · answer #9 · answered by markus878821 1 · 0⤊ 0⤋
Not unless you start missing payments
2007-01-12 17:38:20 · answer #10 · answered by Anonymous · 0⤊ 1⤋