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
amandaa12

1 Contribution
0 People Helped
Spending over 30% of $300 credit limit
Can someone please answer this for me?!?!

I have a fair credit score (671) but the only credit that I have is a car loan that I'm still paying off so I decided to apply for a cc to earn some points but I'm only 20 and have a short history so I got a $300 limit. I can easily pay off 300 every month but every one keeps saying not to go over 20-30% of your limit (which totally makes sense if you have a higher limit and don't want to get in over your head).

With such a low limit can't I just spend closer to the limit? What does spending over 30% really do to your credit score? (ex. I spend $250 out of $300 on my card but pay it off every month?)

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
3051 Contributions
2786 People Helped
Most Helpful Response

Helpful to 2 out of 2 people

Your utilization counts for 30% of your credit score and any time your utilization exceeds 30%, your score takes a hit.  Ideally, keep about 1-3% balance on the card and your scores will increase over the next few months.  After a year or so, they'll probably increase your credit limit without you having to ask, and then you can keep a higher balance if needed.

Top Contributor
740 Contributions
796 People Helped

Helpful to 3 out of 7 people

I can tell you what it does I got 2 brand new 0% APR cards (which is the ONLY time you go over 30% and when you know your not looking at any large purchases for the next 12 months).....I racked up 97% and 91% utilization had a third card @ 0% overall utilization 84% credit score went from 769 (when utilization was 6-7%) to 684 thats 85 point drop.....promo rate is up in 2 months knocked utilization down to 57% score went up 42 points to 726 pretty good given 57% utilization but with only 2 months left need to get it down to 0% (because most have a clause were they back charge you everything if its not paid off and I don't want to pay 6k @ 20% interest haha)

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.