cancel
Showing results for 
Search instead for 
Did you mean: 

what is considering too high on revolving balances?

tag
Anonymous
Not applicable

what is considering too high on revolving balances?

I'm using 1,300 of 10K. Is this really considered too high? 

This is reported every month. 

Message 1 of 17
16 REPLIES 16
Anonymous
Not applicable

Re: what is considering too high on revolving balances?

anything under 30% is best....but I put all my debt on one big credit line card and it's 50% of that card and my credit actually went up.....but the rule of thumb is under 30%.

Message 2 of 17
Anonymous
Not applicable

Re: what is considering too high on revolving balances?


@Anonymous wrote:

I'm using 1,300 of 10K. Is this really considered too high? 

This is reported every month. 


Too high in terms of what?  If you're talking FICO scoring, anything over 9% (which you are) is going to bring your score down.  Is it a huge amount?  Probably not, maybe 15-25 points.  The next threshold is at 29%, so your score won't change at all with your utilization going up from where you are now to 28%, say.  Silimlarly, it won't go up at all until you get below 9%.  That's all from a scoring perspective.

 

Scoring aside, if you're talking about a manual review where a human being looks at your utilization and draws his or her own conclusion, as long as you are below that second threshold at 29% it's rare that anyone would be adversely looked upon.  Of course being in single-digit utilization is always going to be ideal, but anything up to 29% IMO won't adversely turn any heads.

Message 3 of 17
Anonymous
Not applicable

Re: what is considering too high on revolving balances?

I understood the question as balance on a card...

Message 4 of 17
Anonymous
Not applicable

Re: what is considering too high on revolving balances?

Great point, Happy.

 

OP, is this your only card?  If not, then going over 8.99% will cause you a score drop, as BBS observes.

 

If it isn't, then you have more legroom.  As long as you keep your total utilization (all credit limits combined) under 9%, then the individual utilization (one card considered by itself) can be much higher with no penalty.  As Happy writes, < 29% is fine for any particular card.  Indeed, some people experience no score drop with an individual util as high as 48%.

 

Either way, all penalties can be erased the next month by just paying down your cards.  So it's not something to worry about.

Message 5 of 17
CramEiko
Established Contributor

Re: what is considering too high on revolving balances?

Good question. I usually run everything @ 0% each month. Every now and then I get caught with a low balance. Like last month I got caught with a $51 balance on a card with $15k trade line and my score went down by a few points. So sensitive the credit bureau's are.... lol





Updated Feb 2023:
Citi Double Cash: $26,300
Citi Costco: $33,800
PenFed Power Cash: $50,000
Chase Freedom Unlimited: $33,400
NFCU Cash Rewards: $29,000
BoA Unlimited Cash: $99,900
Wells Fargo Active Cash: $50,000
Citi AAdvantage Executive: $30,500
Wells Fargo Mortgage 30yr fixed 3.625%

Business Cards:
BoA Business Advantage Unlimited Cash: $8,000
Chase Ink Business Unlimited: $75,000
Chase Ink Business Unlimited: $75,000

RIP: EECU PLOC | BBVA PLOC | Chase SP | Chase Amazon | Chase Freedom | WF Propel | Cap1 QS | AMEX Gold | BoA Custom Cash | Lowes | Barclays Aviator Red
Message 6 of 17
Anonymous
Not applicable

Re: what is considering too high on revolving balances?


@CramEiko wrote:

@Anonymous question. I usually run everything @ 0% each month. Every now and then I get caught with a low balance. Like last month I got caught with a $51 balance on a card with $15k trade line and my score went down by a few points. So sensitive the credit bureau's are.... lol


Are you saying that you usually have all revolving accounts reporting $0, and that last month you had one card report with a small positive balance -- and this caused your score to go down?

 

All cards at $0 involves a substantial score penalty (about 20 points) so allowing one card to report a small positive balance should have caused your score to go up (by 15-20 points).  Certainly not down.

Message 7 of 17
DaveInAZ
Senior Contributor

Re: what is considering too high on revolving balances?


@CramEiko wrote:

@Anonymous question. I usually run everything @ 0% each month. Every now and then I get caught with a low balance. Like last month I got caught with a $51 balance on a card with $15k trade line and my score went down by a few points. So sensitive the credit bureau's are.... lol


Is that a Vantage credit score, as in from Credit Karma? My Vantage score goes up & down like the wind with the smallest changes. My Fico scores remain very constant, changing only with major changes like a new account.

Message 8 of 17
Anonymous
Not applicable

Re: what is considering too high on revolving balances?

It would be impossible for a $51 balance on a $15k limit account to cause a FICO score to drop.  Depending on what the balance was prior to it being $51, your FICO score could have remained the same or increased.  These are the only 2 things that could have happened.

Message 9 of 17
iced
Valued Contributor

Re: what is considering too high on revolving balances?


@Anonymous wrote:

I'm using 1,300 of 10K. Is this really considered too high? 

This is reported every month. 


I'm going to take a different approach to answering this.

 

It's too high of a balance if you can't pay it off, regardless of its utilization percent on your report. All the FICO score in the world doesn't mean a thing if you're saddled with more debt than you can afford.

 

If you can clear it tomorrow but spend that much every month as a matter of course, then the utilization percentages discussed already become relevant to maintain a good score.

Message 10 of 17
Advertiser Disclosure: The offers that appear on this site are from third party advertisers from whom FICO receives compensation.