Thread: Credit Utilization: Teach Me Oh Jedi Masters!

Until last week I had no idea what credit utilization was, but unfortunately i have learned the somewhat "hard way", what it can do to someone's credit, even one who is "doing all the right things" so i thought.

BTW i would like to say now, that if everyone joined this forum before they got credit cards, they would be unstoppable. I love this place already!

Is credit utilization calculated on a per card/credit line basis, or as a % of your combined available credit lines?

For instance, if I had 3 cards, each w/ $1000 limits, and i spent $900 on one card, paid it off that month, but didn't spend a dime on the other two, is that w/in the bounds of healthy utilization (under 30%)? Or will I be penalized for utilizing 90% of one of my lines of credit.

Direct answers to these questions, as well as any general knowledge/advice about the monster that is "Credit Utilization" would be greatly appreciated. Thanks in advance!

The best thing to do is not spend on just one credit card but utilize all 3 cards so your not just maxing one card out.

Also you said you spent $900 on one card but you have 3 cards with a total of $3000 credit. So you used 1/3 of your credit or 33%. That isnt that bad but as long as you pay it off every month that shouldn't be a problem. I would just use all 3 cards.