How much of the available credit on your credit card should you spend?
Credit Card
Iamready! asked:
If your wanting to show that your responsible with your credit cards to the credit bureaus and that your are someone that other credit card companies, loan people, and any other lenders want to have as a client. Thanks!!!!
Jessie
If your wanting to show that your responsible with your credit cards to the credit bureaus and that your are someone that other credit card companies, loan people, and any other lenders want to have as a client. Thanks!!!!
Jessie
December 31st, 2008 at 3:12 am
I think any amount is good…as long as you pay it back quickly. always make “more than the minimum” monthly payments…. Just because you have a very high credit limit, it does not mean you have to use it…. But it’s there if you ever NEED IT.
January 2nd, 2009 at 4:14 pm
Remember that whatever you don’t pay off, that portion will be charged interest, so it can get quite expensive if you don’t pay your credit card off quickly. Thats how most people get themselves in trouble and in debt. Use as much of the card as you NEED, don’t go crazy spending money that you know you can’t afford because you need to pay that bill as soon as possible or the amount of money you owe will continue to grow! Also check to see what the interest percentage is and see if you can find a credit card with very low interest rates. Chase credit cards are notorious for their incredibly high interest rates. Just be smart about the way you spend your money, your credit will follow you through life and can affect things like buying a car, house, etc in the future.
January 3rd, 2009 at 12:33 am
Professionals advise that you should not charge more than about 25-30 percent of your credit card limit in any one month, and of course, you should repay the full balance each month. Not only do you avoid interest charges, but you also show that you are a reliable borrower.
When you apply for a loan elsewhere, for example to buy a car or a home, creditors will look at your spending and paying habits. If they see that you are using only a small part of your credit and paying it off regularly, they are more likely to grant the loan request and offer a reasonable interest rate.
January 4th, 2009 at 2:37 am
Never exceed 30% of your limit in any given month and pay in full before the due date.
January 6th, 2009 at 7:12 am
Remember, your credit score reflects how you USE credit.
You can charge as much as you want, but be sure to pay on time. Keep your balance to 25% of your credit limit.