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Question By
dmdaisey

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My Open Credit Card Utilization is 85%.. Does that affect credit heavily?
While my utilization is 85% this month, I only have a $300 limit, and I pay it off FULLY every month.. My credit has dropped near a 100 points and it appears to be for no other reason than that... Is it weighed that heavily?

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Guy with good credit

I believe most people try to stay within 30% of the total allowed.  On a $300 card, that would mean never let your balance get above $90. If you have had the card for a while, call the card company and ask for an increase in your credit line.  If they say no, consider applying for another card, but keep the one you are using OPEN.  History counts. You may take a hit on your rating for an 'inquiry' and 'average length of credit cards', but if you could get another card for let's say $500, you would have $800 available and you could spend just under $240 a month and stay within the 30% percent. As time goes buy, it should get better.

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Reply by
rocketguy

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One other thing... pay your bill twice a month. At the end of the month, it won't look like 85% usage.  If you do that for a few months, maybe it will help in getting them to increase your credit line.

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