Is a $1,500 credit limit good or bad?

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gold-rick
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Is a $1,500 credit limit good or bad?

Postby gold-rick » Wed Oct 31, 2012 11:08 pm

If I have around a 500-600 balance on my credit card with a 1500 credit limit, will it hurt my credit score?


cashback
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Postby cashback » Wed Oct 31, 2012 11:16 pm

If that is your only line of credit then it could. It is recommended to keep your debt to credit under 25%. If that is your only line of credit then you are at 40% (600/1500).

Also, credit cards are considered "maxed out" when they reach 90% of the CL.

With that said, it's not like it will kill your credit score, but if you would like your score higher you may want to consider paying the card off a week prior to the closing date every month so that the balance reported to the credit bureaus is $0.
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WS6R6
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Postby WS6R6 » Wed Oct 31, 2012 11:18 pm

It will effect it for the month yes. Utilization changes every month so if you won't be applying for new credit you will be fine. Generally you want to try and be under 30% but even better is under 10% of your credit limit. But in this case if you pay off your balance and then charge $150 next month, your utilization then would be 10% and the previous high utilization the month before won't matter anymore

Edit: What was said above is the right idea as well, I didn't post in time!
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gold-rick
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Postby gold-rick » Wed Oct 31, 2012 11:47 pm

I usually try to keep it around no more than 300 but this month I had to put a few more things on it, next month it will be back down. So hopefully it didn't hurt me too bad.

cashback
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Postby cashback » Wed Oct 31, 2012 11:56 pm

Then don't worry about it. You'll be fine.
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Amex BCE 25K ---- PenFed Platinum Rewards 15.5K --- US Bank Cash+ 12K --- Discover IT 6K --- Citi Dividend 5K --- Chase Freedom 12.5K --- Amex SPG 6K --- Citi Thank You Preferred 15K

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gold-rick
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Postby gold-rick » Fri Nov 02, 2012 1:27 am

I have 2 other cards, the MTV Capital One card with a limit of 750 with no balance and a Platinum AMEX.

gold-rick
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Postby gold-rick » Fri Nov 02, 2012 1:29 am

I have 2 other cards, the MTV Capital One Visa with a $750 limit with no balance and a Platinum Amex. If I'm only 20, will my age also play a little factor in my credit score?


hematino
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Postby hematino » Fri Nov 02, 2012 4:06 am

The average age of your credit card accounts plays a role in your credit score, but your own age has no direct bearing.
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cashback
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Postby cashback » Fri Nov 02, 2012 10:50 am

gold-rick wrote:I have 2 other cards, the MTV Capital One Visa with a $750 limit with no balance and a Platinum Amex. If I'm only 20, will my age also play a little factor in my credit score?


Like hematino said, your age has no role. But being young, obviously your account age can't be very old. Do your parents have good credit? If so, a good way to boost your own score is have them add you as an authorized user on their oldest account and then it will show on your report as well. My parents did this for me when I was younger and it really helped. They don't even have to give you the card.
Credit Cards
Amex BCE 25K ---- PenFed Platinum Rewards 15.5K --- US Bank Cash+ 12K --- Discover IT 6K --- Citi Dividend 5K --- Chase Freedom 12.5K --- Amex SPG 6K --- Citi Thank You Preferred 15K

Not Used
Citi Simplicity - 5K, Sam's Club Discover - 10K

Future Cards
Sallie Mae World Mastercard

FICOs
Exp 772 - TU 781 - Equ 781

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Postby Money card » Sat Nov 03, 2012 10:04 pm

do you pay your bills in full? if yes then this won't affect your score. but if you pay over time it can be a little damaging.
you said you have a limit of 1,500 and you charge 600.00 a month if your paying the 600.00 your fine, if your paying 400.00 that's also good
but if your paying 150.00 this would hurt your score.



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