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 Scores
Profile Image

Question By
DrChery

0 Contributions
0 People Helped
why do i have to stay below 30% ?
i just got my first credit card and i did do my research on how to build on getting a good credit score, but a lot of my resources says that i should stay below 30% of my credit credit limit but never explained why,i thought it would be good for my score if i use 50% of my credit limit and pay it the next month. Why stay below 30% ?

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

View your scores and reports anytime.

SIGN UP NOW
All Responses

Result 1-1 of 1Results per page: 5 | 10 | 25Page 1 of 1   Previous | Next
Credit Karma Team
Top Contributor
2949 Contributions
5117 People Helped

Hi DrChery,

That's a good question. 30% isn't a strict rule - but lenders like to see that you can use your credit moderately and responsibly. 30% is a good rule of thumb, higher rates may concern lenders as it could indicate you are relying heavily on credit to make ends meet. We've written an article on this topic that you can read here: https://www.creditkarma.com/article/credit-card-utilization.

Result 1-1 of 1Results 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.