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  1. #1
    Registered User New Member
    Posts
    9

    credit usage question

    my most recent credit card statement shows my usage at nearly 80%. i'll be paying the bill of in full. but should i be worried about this affecting my credit score?


  2. credit usage question
  3. #2
    Registered User Senior Member
    Posts
    240
    Do you need credit shortly? because next month you will have paid the bill and show (hopefully) a more normalized credit utilization on that card. If you can wait a month or maybe two, your score should bounce back.

  4. #3
    Registered User Senior Member
    Posts
    192
    I agree with Joanne. You credit score changes every time your reported utilization changes. So you don't need to do anything, unless you are applying for more credit in the near future.

    If you want to help out today, you can always ask your card issuer for a credit line increase. That might help the problem as well. And insulate you from future incidences.

  5. #4
    Registered User Enthusiast
    Posts
    91
    I have a similar story. Like you, we ran up a very large balance in a very short period of time with home reno costs. Once we paid it off, all was well and it bounced back. In the interim, it was quite shocking to see our scores drop by 120+ points in just a month.

  6. #5
    Registered User Semi Pro Member
    Posts
    301
    From personal experience, what you do not want to do is go out and raise your credit limit on multiple cards.

    I did it. It seemed like a good idea at the time. End up getting hammered even more.

    My thought is that the fast run up on my balance followed by multiple requests for more credit did me in.

  7. #6
    Registered User Senior Member
    Posts
    115
    Y'all need to remember that all the credit scores are generated by using algorithms. No human reviews the file and exercises some judgment. To the computer, you never want to look like you're running out of money and suddenly need to use your credit cards, or suddenly needing more credit.

  8. #7
    Registered User Junior Member
    Posts
    30
    The lesson seems to be to slowly add available credit so it will be there when you need it.

  9. #8
    Registered User Senior Member
    Posts
    112
    Quote Originally Posted by Johnny View Post
    The lesson seems to be to slowly add available credit so it will be there when you need it.
    So expanding credit is like boiling a frog?

  10. #9
    Registered User New Member
    Location
    Louisville, KY
    Posts
    7
    Ever notice that you can always get credit when you don't need it? Same is shown on a credit report. If you look desperate for credit (high balances on revolving accounts) it reflects in your credit scores to deter extending more credit. If you want some additional credit, make yourself look less desperate. This will be reflected in your credit scores.

  11. #10
    Registered User New Member
    Posts
    2
    Hi all!
    My name is Eliana and I work for a revolutionary new company called CreditStacks.
    I wanted to jump in here and help answer the question about credit utilization.
    Questions regarding usage are always interesting because there is no definitive answer.
    But one thing is for sure, 'amounts owned' or 'utilization' as it its more commonly known, can have a huge impact on your credit score.
    Credit utilization is the ratio of your credit card balance to your credit limit. Although there is no definitive rule about utilization, wisdom of the crowd believes that your outstanding balance should remain below 30% of your credit limit. Exceeding this amount might be classified as high utilization and could negatively affect your credit score.
    A great way to avoid high utilization is to pay off your existing balance once a month to avoid reaching high utilization rates.
    As a CreditStacks card holder, you never have to worry about utilization penalties because we alert you as soon as we notice high credit utilization.
    For more about other major benefits of CreditStacks, reply to this thread.
    Thanks!
    Eliana

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