Credit Advice

Have a question? Have advice to share? The combined knowledge and experience of everyone in the Credit Karma community can help you. Enter your question or help others below to get started!

Question

Posted in Credit Cards
Profile Image

Question By
TimothyPMore

0 Contributions
0 People Helped
credit card utilization is high
I have high utilization because I have low credit limits. I have enough income to have more debt but intentionally kept my debt low. Now I want to buy a house and have a bad credit score. (My payments are <1% of my monthly income. Also since until a few years ago I only use my debit card my credit history is only about two years. If I get more credit cards it will lower my utilization but also decrease my age of credit history. What is the best path?

Your Credit Scores Should Be Free. And Now They Are.

View your scores and reports anytime.

SIGN UP NOW
All Responses

Results 1-2 of 2Results per page: 5 | 10 | 25Page 1 of 1   Previous | Next
Top Contributor
17 Contributions
19 People Helped

If you want the fastest solution to better credit here: pay off your current card debt

If you apply for more cards:


  1. You add hard inquiries (lowers score)
  2. Your Average Age of Accounts decreases (lowers score)
  3. If you add a lot of cards fast, it's a huge red flag to lenders 
  4. You add more revolving credit to your accounts and unless you have loans to back it up, that could decrease score

However, if you don't mind the wait, you would take an initial hit to your credit and then bring it up fairly fast with having more accounts that would increase average age of accounts in the long run, and you'd have an extensive line of credit for the future. But, you would take an early hit on credit for a short while (12 months - 2 years).

Top Contributor
52 Contributions
508 People Helped

I had the same problem a couple of months ago.  I bought a new home 3 yrs ago, financed a car and opend up some crappy cards with low limits.  Which wasn't working since they were always carrying high utilizations.  Just paid all the cards off & my score jumped up!  Just purchased the new car I really wanted & a new bike.  Got 4 new cc's with generous CL's.  CK's recommenations. (BOA, Chase, Amex everyday Blue & Discover it.  I know I will take a hit on my score but in the long run, I believe it's the only way to get your score over 800 & as close to 850 as possible.

Results 1-2 of 2Results per page: 5 | 10 | 25Page 1 of 1   Previous | Next

Your Credit Scores Should Be Free. And Now They Are.

View your scores and reports anytime.

SIGN UP NOW

Reply to this Question

Write your response:
Enter Your Comments

The Credit Advice pages of the Site may contain messages submitted by users over whom Credit Karma has no control. Credit Karma cannot guarantee the accuracy, integrity or quality of any such messages. Some users may post messages that are misleading, untrue or offensive. You must bear all risk associated with your use of the Credit Advice pages and should not rely on messages in making (or refraining from making) any specific financial or other decisions.