Formerly Black Trash
Philosopher, Connoisseur, Future Legend
also
Just got my first credit card
Just got my first credit card
Why can’t you use more than %30 of your credit card without hurting your score?
- Thread starter Formerly Black Trash
- Start date
You want to keep utilization below 30 but even less is better. Just pay off the balance every month and turn credit cards into rewards machines should be their only purpose.
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The God Poster
LWO representa
"Isn’t can’t you use more than %30 of your credit card without hurting your score?"
Negro what
Negro what
The God Poster
LWO representa
Ok now that you fixed the thread title
It basically your utilization that affects your score. If you maxing out your card every month creditors look at it as if you're financially struggling.
Try and keep it below 10% usage.
I remember when I first got a card I thought I was supposed to max it out but pay it back when the statement came
The Blackout
F-ck Da Mods
if I gave you $1,000 and you only spend $100 then I’ll be more than likely to continue to give you more money/credit instead of the guy who spends $750 out of that $1,000.
calixprynce
...
Keep it between 1-10% . Don’t leave it at 0% at statement posting time
if I gave you $1,000 and you only spend $100 then I’ll be more than likely to continue to give you more money/credit instead of the guy who spends $750 out of that $1,000.
Backwards ass logic when you think about it. If you are only using 100 dollars out of 1000, why do you need more? You’re already showing you don’t need it
The whole way the credit model is scored is dumb as hell. It’s modeled for you to have debt, but not too much debt. God help you if you don’t have any debt, as you are looked at as much as liability as someone with a 620 score
Neil Tyson
YYZ
Never heard of that. I'm good as long as I pay the balance for the deadline.
Backwards ass logic when you think about it. If you are only using 100 dollars out of 1000, why do you need more? You’re already showing you don’t need it
The whole way the credit model is scored is dumb as hell. It’s modeled for you to have debt, but not too much debt. God help you if you don’t have any debt, as you are looked at as much as liability as someone with a 620 score
If you maxing out your card every month it suggests you’re having money/cash flow problems. Banks want to loan money to people who don’t really need it but are using it for a business or specific purpose. Those people are more likely to pay it back. They don’t want to loan it to people who DESPERATELY NEED the money
Sounds fukked up doesn't itIf you maxing out your card every month it suggests you’re having money/cash flow problems. Banks want to loan money to people who don’t really need it but are using it for a business or specific purpose. Those people are more likely to pay it back. They don’t want to loan it to people who DESPERATELY NEED the money
Formerly Black Trash
Philosopher, Connoisseur, Future Legend
I heard %30
So that was a lie?
calixprynce
...
30% is for beginners
10% is for people who are serious about raising that credit score
If you maxing out your card every month it suggests you’re having money/cash flow problems. Banks want to loan money to people who don’t really need it but are using it for a business or specific purpose. Those people are more likely to pay it back. They don’t want to loan it to people who DESPERATELY NEED the money
I understand that. It doesn’t make it any more stupid from a consumer standpoint.
Just look at our last recession. Banks were getting super stringent with their lending standards. Back in 2010 I went to my credit union for a $1000 unsecured loan. They were talking about they needed to see that I had assets for 3 times the loan amount.
Mind you I had 5 figures in my bank account and a credit score of 770+
I walked out of there laughing and considered closing my account there. Banks act dumb as hell, I tell you.(Before anyone asks, I know there were other options readily available, including just spending the rack I had available on what I needed. I did just that.)