The best % balance on your credit card??

[relcelestia]

without going into detail, im transfering balances to a new CC to save on interest rates....
but i know that at a certain % of your balance it negatively effects your credit score..

for example, you never wanna max out your credit limit... but where is the "line" were it begins to look bad on your credit score?

[Ginger]

I was always told to try not to go beyond 30%. I don't have much experience with credit cards, but that's what I naturally do with my one anyway. I'm really curious to see what the other responses will be!

[relcelestia]

I was always told to try not to go beyond 30%. I don't have much experience with credit cards, but that's what I naturally do with my one anyway. I'm really curious to see what the other responses will be!

oh cool
i also just realized, i wonder if the percentage is for your overall credit max.... so by adding this new credit card i increased my max... and i dont plan on making any new purchases on either of my cards... just trying to pay it off asap with the least interest rates

not sure if that makes sense but for example:
Old CC has a max of $10,000 and i have a current balance of $5000 (50%)
Add the New CC has a max of $10,000 with 0 balance
and so now i have a total max of $20,000 but only a 25%  balance of the max

any clearer?? lol

[achab1984]

That is a good question!!??? I have one CC that I am using right now. All of my other cards have nothing on them. Right now that one that I am using has no interest on it and that is going to end in July. I got a new card that will not have an interest on it till the end of 2014. So what I am going to do it transfer it all over to that card. The only bad thing about it is that its going to max that new card out when I do it. I hope that is not going to hurt me. Or maybe I should trans only some of it and make bigger payments on the old one that will have interest on it then. I am going to be checking this out to see what others have to say about this.    

[relcelestia]

ok i found this on this site
http://www.nationwide.com/guide-to-using-credit-card.jsp

"Don’t exceed 30% of your total credit limit. One way to keep your credit score healthy is to make regular monthly payments on time. Another is to keep your credit utilization ratio under 30%. The credit utilization ratio is the percentage of total available credit that you’re using. For example, if you have a Visa credit card with a limit of $1,000, you should keep your balance under $300. But remember that the ratio applies to the sum all of your cards. So if credit card number one has a $3,000 limit, and you have a balance of $3,000, and credit card number two has a limit of $7,000, but carries no balance, you’re right at the 30% utilization mark ($3,000 of an available $10,000)"

so basically maxing out ONE of 2 cards isnt gonna hurt your score as long as the other card doesnt have much on it....
sweeetness!! this is the answer i was hoping for 

[kamakazee82]

each card and financial institution and card grantor will have their own policies built around the governmental rules and regs ...

50%-max is grey area 0-25% is generally considered healthy ...

... any amount ... when paid off in full at the end of each pay cycle ... is VERY healthy ...

... transferring the balance card to card is generally not a good practice unless you'll be shutting down the other card because the rates are crap and bd practices ... generally that's considered a huge red flag ... :\

... multiple cards with high limits ... multiple cards with no balances ... are also some negatives ...

... there are many many factors that come into lay with credit scores ... :\ .. best ay to build credit with your cards right now ... work on paying down the large one ... with the other ... if you keep it active make a small purchase once a month (gas or lunch), ONLY ONE, and pay it off EVERY MONTH ... the large balance will show that you use credit (positive), but also shows that you maybe over-extended yourself with the large balance (negative), the other card can be used to show that you are still using credit (positive) while paying down the large balance (positive) and paying off the smaller purchases on the other card (HUGE positive) ...

... my first suggestion in all honesty would be talking to your financial institution (bank or credit union) about it ...

Post Merge: April 14, 2013, 09:25:00 PM

each card and financial institution and card grantor will have their own policies built around the governmental rules and regs ...

50%-max is grey area 0-25% is generally considered healthy ...

... any amount ... when paid off in full at the end of each pay cycle ... is VERY healthy ...

... transferring the balance card to card is generally not a good practice unless you'll be shutting down the other card because the rates are crap and bd practices ... generally that's considered a huge red flag ... :\

... multiple cards with high limits ... multiple cards with no balances ... are also some negatives ...

... there are many many factors that come into lay with credit scores ... :\ .. best ay to build credit with your cards right now ... work on paying down the large one ... with the other ... if you keep it active make a small purchase once a month (gas or lunch), ONLY ONE, and pay it off EVERY MONTH ... the large balance will show that you use credit (positive), but also shows that you maybe over-extended yourself with the large balance (negative), the other card can be used to show that you are still using credit (positive) while paying down the large balance (positive) and paying off the smaller purchases on the other card (HUGE positive) ...

... my first suggestion in all honesty would be talking to your financial institution (bank or credit union) about it ...

remember ... the larger your card limits the more it can oh dear against you as well ... so while you meet the% on your cards take into consideration it looks bad if you apply for a loan and have a large 'unsecured debt" possibilty ... that's $20,000 in possible unsecured debt you could dig possibly yourself under ... the card companies don't care on iota about you ... just the interest they make off of you ... they are insured against losses they might see from it ... you, not so much ... *hug*

just be smart. i've seen some very scar things happen to very nice people when it comes to credit cards ... takes a life to earn it ... one bad split-second decision to ruin it all ...

[kaoskat]

This is interesting stuff. I didn't know any of this.

[melodys_angel]

Glad you were able to find out.

Im not much for credit cards but its interesting to know

[Eviecorn]

Yep, agreeing with the 30% rule.  Transferring balances can be good or bad, depending on the circumstances.  Good luck!