Credit card utilization

[bobkmn]

Hi folks. I've been gone for a while but am back and I have a question or 2. I don't believe that my profile is current--but I've been gardening for about a year. I have some questions about credit card utilization. Most of my high balances come from being an AU on 2 cards in my wife's name. Her credit score is good and those balances got high due to life events and not due to misuse. I do not plan on removing my AU status on either of the cards. My first question is: How much emphasis is placed on overall credit utilization as opposed to a card by card basis? Secondly, my income has more than doubled since I was approved for a credit card and I am wondering what effect would applying for a new card would have on my overall usage? I would not be used for anything else than increasing my overall credit limit vs my outstanding balances and perhaps to move some partial balances from a card where it is too high (over 30%) an my 0 interest ride is about to end? I understand that my score would take a temporary hit from applying for a new card and I am ok with that. Oops, I think I asked more than 2 questions. Thanks, you people have played a great role in helping me improve my score!

[Skye12329]

I think it's slightly better to have multiple cards with less than 30% than having a bunch of cards with 0 and have 1 maxxed out. Although companies would prefer to see maybe 1 or 2 cards with balanced vs. Like all cards with a balance. As for income wise and applying. It your income has doubled it should help credit limit wise assuming your report is clean of baddies.

[bobkmn]

Thank you for your thoughtful response. I understand your comments regarding the distribution of the credit balances.

i guess my question would be would it be a mistake for me to get another card to help spread out the balances on 2 of my cards? 

If it might be a good thing to do, do you have any thoughts as to what might be a new card to try for?

thanks again.

[racer-x]

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@bobkmn wrote:

Thank you for your thoughtful response. I understand your comments regarding the distribution of the credit balances.

i guess my question would be would it be a mistake for me to get another card to help spread out the balances on 2 of my cards? 

If it might be a good thing to do, do you have any thoughts as to what might be a new card to try for?

thanks again.

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More info is needed.  What are the balances vs the credit limits on the cards carrying balances?

Negatives/derogs on your reports, if so, how recent, how many....

What is your income?

Inq's are low due to a year gardening?

CapOne Venture is handing out $10k-15k CL's left and right with mid and uupper 600's....

Amex has been giving 3X CLI's upon activation via luv button....

[takeshi74]

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@bobkmn wrote:

How much emphasis is placed on overall credit utilization as opposed to a card by card basis?

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Overall is probably more of a concern than individual but that doesn't mean you can disregard individual utilization.  A cautious creditor may have have concerns over high utilization even on just one account.  Regardless of amount of emphasis both overall and individual matter.

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@bobkmn wrote:

Secondly, my income has more than doubled since I was approved for a credit card and I am wondering what effect would applying for a new card would have on my overall usage?

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We can't tell you what your odds are based on the change to your income.  You can do the math to determine the impact on utilization.  Keep in mind that having one or more cards with high utilization does impact your approval odds as well as the limits and APR that you stand to qualify for.

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@bobkmn wrote:

I understand that my score would take a temporary hit from applying for a new card and I am ok with that.

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Impact varies.  It's never just about the action but one's credit and how the action factors in.  While many would see a hit, some can see a gain while others could see a negligible difference.