Quote:
Originally Posted by skinnay
so i should just leave a balance of about 20% of my limit on the card at all times?
|
Right.
Somewhere between 10-30% I guess is supposed to be the key. You can pay in full every month. But then buy your gas, fast food, or whatever..nickel and dime stuff so you are showing you know how to "use credit". That's what they are looking for.
If you go over the 50% mark, you will take a hit on your credit score. It will go back up once you've paid down your revolving debt. But if you are over 50% up to maxing it out, you will take a hit up to 80 points all depending. But you get that back once balance is low again.
That you use it, and can keep from going over the limit, make more than minimum payments, etc.
When you look at a REAL version of your credit report (like the free annual one) versus one that's on MyFico, or Truecredit you will see that what lenders get to see is a lot more detailed on your history then you see. Including if you are paying more than what's owed. I know I pay a little more even on my student loans because I know they are looking at it.
Apparently this help show them you are not downing in debt. I know for me, I was getting card increases within 3-4 months on cards, instead of waiting the 6 months, because I followed the 'tips'.