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Originally Posted by scorch  Very profound post. I have a question about something I'm rather surprised about or perhaps misread when it comes to utilization. You say a balance lower than 10 percent is recomended, so therefore, since my credit line on my credit card is $400, that means I am in a better position when my balance is under $40?
I would just like to make sure. Thanks. |
Yes, that is correct. Some say it's around 30-40%. I personally like to keep mine lower. Over 50% shows lender that you are near your max and statistically that means you are in trouble or very close to being in trouble and unable to pay your bills. It makes you a bigger risk to lenders and your scores will reflect that.