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yh84ja

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Credit limit increase vs. Credit utilization
I have a credit card whose limit was $300 for several months. I kept the utilization of that line of credit at 7-10% every month that I had it and never carried a balance from one month to another. This has caused my various credit scores to go up, neat! The line of credit was recently extended to about $3,100. I don't want to use the card for $300 worth of purchases each month to keep the utilization rate the same and as I understand it, a credit line reduction is terrible for your credit.

Do I just bite the bullet and use 10% of the line each month? Request a reduction? Or will I be fine if I just keep spending the usual amount with the card even though that would be only about 1% utilization?

Thank you.

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Keep making the same charges you have been making.  

I have one CC that only has Netflex on it every month and I pay it every month.

Also I have been making payments on my CC's that have a 0 balance and in return my payment history has gone WAY UP!  Look at my profile as to what I was testing last year.

Top Contributor
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No you're in good shape!

Helpful to 1 out of 2 people

Have a high limit is a great thing and just because you have a $3,100 limt do not mean you have to use a1/3 of that each month. Only use 1/3 of the limit and pay it off each month and you will be ok. Do not request a reduction? Having a higher limit reduces your utilizaton score which is a good thing! Good Job! I hope this helps!

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