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Credit Balance Affecting Score

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Anonymous
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Credit Balance Affecting Score

My maximum credit lines vary from $3500-$5500 on three credit cards. I typically use my cards instead of cash for convenience. While my balances tend to hit 50-75% of my maximum credit lines, I always pay off the balances in full each month. It seems that my credit is adversely affected because I come close to my maximum. Doesn't the fact that I pay my balance in full each month count? Is this reflected in my score? Should I use my credit cards less and just use my debit card?
Message 1 of 4
3 REPLIES 3
Anonymous
Not applicable

Re: Credit Balance Affecting Score

Unless you are applying for credit this is just fine-
 
BUT- If you want to keep that 60-100 FICO points you can do several things-
 
You could make an extra payment before the statement cuts (pay most of the balance not just the previous statement balance)
and/or increase your limits.

 

nancykitty wrote:
My maximum credit lines vary from $3500-$5500 on three credit cards. I typically use my cards instead of cash for convenience. While my balances tend to hit 50-75% of my maximum credit lines, I always pay off the balances in full each month. It seems that my credit is adversely affected because I come close to my maximum. Doesn't the fact that I pay my balance in full each month count? Is this reflected in my score? Should I use my credit cards less and just use my debit card?


Message 2 of 4
Anonymous
Not applicable

Re: Credit Balance Affecting Score

Doesn't the fact that I pay my balance in full each month count?
Yes - for payment history
 
Is this reflected in my score?
Yes
 
Should I use my credit cards less and just use my debit card?
I only use my DEBIT card for cash (never)
Just have to work the system to max your rewards and FICO score.
Message 3 of 4
gdtobefree
Established Contributor

Re: Credit Balance Affecting Score

I pay mine off every month, while it states paid as agreed, the timing of when you pay it and they report is the killer, if you pay it off AFTER they report it will be another 30 days for some that will report again, my suggestion and this is what I did, call them and ask when they report and make sure your payment is posted by then that way every month it shows a 0 balance when they report and your ratio is always under the 30-35% of the limit thus keeping your score up.
when you carry a balance that is over 30-35 % of your limit is when it affects your score and decisions of potential new accounts you apply for.
 
Now do keep in mind that CC cos HATE people that pay their cards off every month and never carry a balance, that is because they don't make any money off of you.
Message 4 of 4
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