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What is considered "maxxed out"?

Established Contributor

Re: What is considered "maxxed out"?


Open123 wrote:

Jlu wrote:

^Although if you have $50k in available credit, what are you doing with a $1k limit?


I liked to use my BBRZ to attain premier silver status with general spending?  LOL


LOL

AMEX SPG $30K | Citi TY Premier $20k | PenFed PlatRewards $25k | Barclay Arrival+ 40k | Chase Freedom $20k | BofA AMEX $15k | Discover IT $20k | | NASA Platinum-Advantage $20k | CapOne Quicksilver $15k | Amazon Card $10k |

My Journey from Sub-600s:
Message 11 of 23
Mega Contributor

Re: What is considered "maxxed out"?


Open123 wrote:

Jlu wrote:

^Although if you have $50k in available credit, what are you doing with a $1k limit?


I liked to use my BBRZ to attain premier silver status with general spending?  LOL


Smiley Very Happy

 




EQ FICO 548 3/3/16
Message 12 of 23
Valued Contributor

Re: What is considered "maxxed out"?


LS2982 wrote:

Jlu wrote:

^Although if you have $50k in available credit, what are you doing with a $1k limit?


True..... Smiley Tongue

 


I've got approx $40k in total available credit and a $700 Target card that I would still use if I was in USA.  I don't buy that much in one stop at Target though and have never had it near the $700, but if I wanted to buy something that cost $700, I wouldn't even think about it and would just charge it to my Target card.

 

EDIT:   I would pay it before the statement though.  My Target card has never reported a balance.  I only use it for the 5% off.

EX:694 TU:744 EQ:777
Amex ED $19.5k - BoA Travel Rewards $15k - CSP $5k - SDFCU EMV $15k - NFCU goRewards $20k - Barclays Arrival $6.5k
Message 13 of 23
Moderator Emeritus

Re: What is considered "maxxed out"?


Jlu wrote:

^Although if you have $50k in available credit, what are you doing with a $1k limit?


 

Keeping a rebuilder card as a toy AU card for my DD to use as a tool for building her credit. Smiley Happy

 

(By the time my new accounts finished appearing on my CRs, I should have ~40K in available credit, and I'm keeping my $750 Cap1 card.)

 


Current Scores: EQ 775 (03/04/2014), EX 756 (03/01/2014), TU 760 (03/01/2014)
Ruby Spade Garden Club Member - Last App: 03/04/2013 - No apps until 2014
Cards: Cap1 Venture 6.4k, Cap1 Quicksilver MC 1.75k, BankAmericard 1-2-3 Visa Signature - UCF Alumni Association 5k, Discover 7k, Citi Diamond Preferred MC 10.35k, Wells Fargo Rewards Visa 7k, Chase Freedom 5k, Chase Ink 7.5k, Amex Green NPSL, Dillard's Amex 7.5k, JC Penney 7.5k, Kay Jeweler's 5.1k
Message 14 of 23
Frequent Contributor

Re: What is considered "maxxed out"?

For scoring purposes, it's over 90%. I have an Old Navy card with a puny $200 limit (I use it for the discounts). It accidentally reported with a $191 balance right after I opened it, and my scores took a hit and my reports showed a negative factor of "having a card with over 90% utilization". As soon as it reported with $0, my scores went back up and that negative reason disappeared. I've had other cards report with utilization between 80% and 90%, and they didn't cause that kind of score impact or negative reason, which seems to confirm that 90% is the magic number.

Scores:
07/29/12: EX FICO (Amex) 684 | EQ MyFICO 631 | TU Walmart 695
Current: EX FICO (MyFICO) 733 | EQ (MyFICO) 683 | TU (Walmart) 745

First Goal: 700+ across the board - Got it on EX & TU!!!
Message 15 of 23
Valued Contributor

Re: What is considered "maxxed out"?


tinuviel wrote:

Jlu wrote:

^Although if you have $50k in available credit, what are you doing with a $1k limit?


 

Keeping a rebuilder card as a toy AU card for my DD to use as a tool for building her credit. Smiley Happy

 

(By the time my new accounts finished appearing on my CRs, I should have ~40K in available credit, and I'm keeping my $750 Cap1 card.)

 


Tinu - I think this is an excellent idea...

Ray

** Every Card has a Job, and Every Card does its Job **
Message 16 of 23
Senior Contributor

Re: What is considered "maxxed out"?

In practice >80-85% is maxxed out, if allowing some, not much though, wiggle room to avoid going over credit limit due to finance charges.

DCU EQ 5.0, Citi EQ 08 Bankcard, PenFed EX NG2
EX 08: AFCU, Amex, Chase, PSECU EX 98(?)
TU 08: Barclays, Discover
Message 17 of 23
Contributor

Re: What is considered "maxxed out"?


DaveSignal wrote:

LS2982 wrote:

Jlu wrote:

^Although if you have $50k in available credit, what are you doing with a $1k limit?


True..... Smiley Tongue

 


I've got approx $40k in total available credit and a $700 Target card that I would still use if I was in USA.  I don't buy that much in one stop at Target though and have never had it near the $700, but if I wanted to buy something that cost $700, I wouldn't even think about it and would just charge it to my Target card.

 

EDIT:   I would pay it before the statement though.  My Target card has never reported a balance.  I only use it for the 5% off.


+1 - Except, I don't care when my RedCard shows a balance. It's only $500 (for over 5yrs Smiley Very Happy) and we had a new baby this year, and we end up spending at least $300/mo on formula and diapers and miscellaneous stuff every month - for the 5% off. I pay 1-2 times per months, and there's always the inevitable 1-day-before-statement-cuts purchase!  

It's happened almost every month since we've had the baby. So, I usually show $50-$100 on the statement. I stopped stressing over it, because I know I pay it down to $0 every month. But, it's not worth it to me to use another card and miss out on $3 or $5 in discount just to have the statement report $0 when we have to make those purchases near the statement date.

Message 18 of 23
Moderator Emeritus

Re: What is considered "maxxed out"?


RockinRay wrote:

tinuviel wrote:

Jlu wrote:

^Although if you have $50k in available credit, what are you doing with a $1k limit?


 

Keeping a rebuilder card as a toy AU card for my DD to use as a tool for building her credit. Smiley Happy

 

(By the time my new accounts finished appearing on my CRs, I should have ~40K in available credit, and I'm keeping my $750 Cap1 card.)

 


Tinu - I think this is an excellent idea...


 

Thanks. I think that it will turn out to be a win-win for both of us. I've instructed her to use it only for normal expenses such as gas and groceries and to reimburse me every week. This way, she'll learn how to handle a credit card and will have it show on her credit reports. She'll be getting almost two years of spotless history from it right off the bat. Since it's a rewards card, her usage should offset the AF, so it won't cost me anything to keep it open. And, I'll get an extra year or so of reporting, depending on when she's able to get her own card. All in all, I think it's a very good arrangement.

 


Current Scores: EQ 775 (03/04/2014), EX 756 (03/01/2014), TU 760 (03/01/2014)
Ruby Spade Garden Club Member - Last App: 03/04/2013 - No apps until 2014
Cards: Cap1 Venture 6.4k, Cap1 Quicksilver MC 1.75k, BankAmericard 1-2-3 Visa Signature - UCF Alumni Association 5k, Discover 7k, Citi Diamond Preferred MC 10.35k, Wells Fargo Rewards Visa 7k, Chase Freedom 5k, Chase Ink 7.5k, Amex Green NPSL, Dillard's Amex 7.5k, JC Penney 7.5k, Kay Jeweler's 5.1k
Message 19 of 23
Frequent Contributor

Re: What is considered "maxed out"?

Although your question and the replies so far are all aligned on the same idea (% of card's credit line used) I would offer up a different perspective. 

 

TO ME - maxed out is how capable am I of making payments to my debts.  That is -- how much discretionary money do I have left after paying off the monthly debts and savings?  For some people it might be only a couple hundred dollars and for others it is in the thousands.  For me, it's about $1500 a month that I can throw at my non-mortgage debts.  If I am paying all of that out, I consider myself MAXED OUT with nothing left for other purposes.

 

Since this amount is personal to each person's situation and budget, there is no preset percentage involved.  And NO you do not want to cross your personal threshold as that would mean you are generating more debt than your ability to pay it off.  Smiley Mad


Starting Score: 732 October 2007; Current Score: EQ 836; TU 806, November 2017; Oldest Reporting EQ Account: 15.8 years; EQ AAoA: 8.0 years; Typical credit utilization 1.8% typical single card utilization 10.6%
Message 20 of 23