@Anonymous wrote:
I got a prepaid credit card and I have kept the balance under 30% and have paid the total balance off every month I had it for about 3 months. I had been told told my credit score was what it was because of my credit limit being 200 so I went and up it to 600 available credit with the same intention to keep the balance at 30% and paid it off when I get the bill was this a good decision?
Hi Jenny,
First of all credit limits are not taken into consideration for scoring. It is the monthly utilization of that CL that is calculated for scoring. For most cards whatever amount reports on your monthly statement is the amount used to figure utilization.
Here is what I suggest to help your score. Others may suggest something else. You can use your card as much as you like during a month but make sure that the balance that reports on your statement is <9% of your credit limit. I think you will find that most folks around here would think that 30% utilization is too high.
All you have to do is time your payments to achieve that desired <9% utilization several days before the statement posts. Then pay any balance before the due date to avoid any finance charges. In your case with a $600 CL let no more than $54 report on your statement each month.
From a BK years ago to:
EX - 9/09 pulled by lender 802, EQ - 10/10-813, TU - 10/10-774
"Some people spend an entire lifetime wondering if they've made a difference. The Marines don't have that problem".
