- 708
- 11
- Joined
- Jun 29, 2007
Don't spend over 1/3 of your available credit.
^^ yes, very important. Credit utilization ratio can adversely affect your score.
Simply put...maxing out your credit cards or coming to 75% of your limit on a frequent basis will hurt your credit score. If you feel that you would like touse (and pay off) the bulk of your credit card limit every month to help build your credit, well you'd be better of asking for a limit increase so that youare only drawing on a small percentage of whats available.
All other things being the same:
5k balance on a 20k limit >>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>> $500balance on a $750 limit