What should your maximum ongoing balance be?

[Anonymous]

The Credit Scoring 101 article mentions that ongoing balances should be non more than 10% of the total credit limit. Is that just to improve score, or does it actually hurt your score to go over this amount? I have seen suggestions that one shouldn't go over 20-30%.

Also, does it hurt your credit score to have too many credit cards? Will it hurt your ability to get other loans?

Thanks.

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Edit by cheddar:  Removed link to commercial site.  Please refrain from posting links to commercial websites as part of a signature.

Message Edited by cheddar on 08-11-2008 09:36 AM

[MidnightVoice]

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FreeCreditCardGuide wrote:

The Credit Scoring 101 article mentions that ongoing balances should be non more than 10% of the total credit limit. Is that just to improve score, or does it actually hurt your score to go over this amount? I have seen suggestions that one shouldn't go over 20-30%.

Also, does it hurt your credit score to have too many credit cards? Will it hurt your ability to get other loans?

Thanks.

[Link removed]

Edit by cheddar:  Removed link to commercial site.  Please refrain from posting links to commercial websites as part of a signature.

Message Edited by cheddar on 08-11-2008 09:36 AM

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Yes it hurts your score to go over about 9% reported utilization, and anything that hurts your score can reduce your chance of getting a loan

It can do.  Especially if they are all reporting balances, it can affect your score, hence your ability to get loans