i heard that you should always pay your cards in full, but i also heard something about how you should never use up more than 10% of your credit limit per credit card? is that true??
2007-10-20 06:30:25 · 4 answers · asked by meredith 1 in Business & Finance ➔ Credit
If you carry more credit card balances of more than 30% of your available limit, it will negatively impact your score. Paying your credit cards in full every month is better. First, you stay below that 30% mark. Second, you don't waste money on interest. And third, you won't get burried in credit card debt.
Some people erroneously think that paying small payments is better for your credit score. But credit cards do not report the amount of your payment. Just whether it was on time or late.
It isn't the percentage you charge, it's the balance you carry. Only charge what you can afford to pay in full and on time every month.
2007-10-20 06:53:56 · answer #1 · answered by bdancer222 7 · 2⤊ 0⤋
No, neither is true! Having a credit limit with 1/3rd of your balance used and making your payments on time is the best way! Go to the website below. This is a great one with all kinds of good information. Take a look especially at "how credit scoring works". There is something in this site for everyone regardless od your credit history! you can learn to clean up your credit here and learn how to avoid the problems of having to clean up your credit here! The sponsored links are there to help you establish credit and repair your problems at the same time! I took my credit score from 480 to 709 in one year with help from this site! It's worth the time to read!
2007-10-20 06:41:56 · answer #2 · answered by Anonymous · 1⤊ 0⤋
A loan officer told me not to spend more than 75%. Which I think shows better ability to pay it depending on limit. For example if the limit is 250 spending 10% would be $25 and paying off that little of an amount isn't so impressive as charging say 75% of 2500 which is 1875 and paying it off at once. I do think that spending a certain % on either is wise. Also credit cards don't help your credit a whole lot because they are revolving and not installment payments so it makes it harder to get a auto/house loan which is the problem I ran into just this week.
2007-10-20 06:41:36 · answer #3 · answered by billie b 5 · 0⤊ 3⤋
as long as you pay you bills on time, you should be fine.. Never be late on paying your bills
2007-10-20 07:55:33 · answer #4 · answered by shorty21 5 · 0⤊ 0⤋