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j0406595

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Credit Card Limit Percentage Usage Question
When talking about a individual credit card (not an individuals total available credit) what is the appropriate usage to limit ratio. I have always heard you should never use over 30% of your available limit, even if you do pay your card in full off every month, and that utilizing a higher precentage could be harmful to your credit score.

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A lot of people will recommend not having any one individual card go over 30% utilization, but I have found this not to be true. I've had a Discover card for nearly 20 years an have, at times, gone to 50 or 60% utilization on that one card without problems. I'm sure policies differ from card vendor, to card vendor. But when you think about it, when they make big, zero-interest promotional offers, they're asking you to run up your utilization. The one time this did "ding" my score was when I transferred a lot of debt from one card to another, and the card I'd loaded up reported to the credit bureaus first, making it look as if my total debt had increased. But as long as you're making good, strong, ontime payments, running up the percentage on an individual card shouldn't hurt you.

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