@HeavenOhio wrote:
I think you have a lot of leeway as long as your statement balances are paid in full and your statement balances are usually at 28.9% of the limit or lower. An occasional statement balance that's higher than 28.9% is likely to be OK too as long as it's paid off promptly.
My gut said that having higher utilization now and then on a low-limit card is to be expected. The total dollar amount isn't a huge risk for a company. It's the payment patterns that matter.
+1. Also worth bearing in mind that many people with low-limit cards, being rebuilders, may not always be in a position to PIF every time, particularly if their income levels and their other financial obligations (rent/mortgage, utilities, insurance, living expenses, etc.) don't always allow it. Therefore, the lenders will really be looking to see whether the account holder is keeping their balances under control, managing their spending wisely and paying off as much as they can each month. This is what I mean when I say that carrying a small-to-moderate balance is not always a bad thing provided you're seen to be doing your best to keep it in good control and pay it down to the best of your ability.
