UnThreaded | Threaded | Whole Thread (2) | Ignore Thread Prev | Next
Author: aj485 Big gold star, 5000 posts Feste Award Nominee! Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 308782  
Subject: Re: %'age of credit line Date: 9/3/2012 3:21 PM
Post New | Post Reply | Reply Later | Create Poll Report this Post | Recommend it!
Recommendations: 4
Question - where does the usage of credit line threshold exist - that would negatively affect a credit score?

That is - is it 30%, 50%, 90% used of a credit line?


yes, yes and yes..... any of those percentages owed on a single card or on an overall basis CAN affect a credit score negatively. How much of an impact it will have depends on a lot of things - How many revolving credit lines do you have? What are the credit limits on each? If it's a single line that is utilized that much, what is the total utilization? If it's an overall utlization, how many credit lines is it spread over, is it spread evenly or mostly on 1 or 2 lines? What does the rest of your credit profile look like?

In general, with credit utilization, the lower the better. In order to have the highest credit score, you should aim for less than 10% utilization, both on an overall basis and for each individual credit line.

AJ
Post New | Post Reply | Reply Later | Create Poll Report this Post | Recommend it!
Print the post  
UnThreaded | Threaded | Whole Thread (2) | Ignore Thread Prev | Next

Announcements

TMF Credit Center
The Motley Fool Credit Center arms you with real tools and simple messages, that will help you in every credit situation.
Pencils of Promise - Back to School Drive
"Pencils of Promise works with communities across the globe to build schools and create programs that provide education opportunities for children."
Post of the Day:
Apple

Wal-Mart Nixes Apple Pay
What was Your Dumbest Investment?
Share it with us -- and learn from others' stories of flubs.
When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Community Home
Speak Your Mind, Start Your Blog, Rate Your Stocks

Community Team Fools - who are those TMF's?
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and "#1 Media Company to Work For" (BusinessInsider 2011)! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.
Advertisement