Sep 29

How much of my credit card do I need to have paid to improve my credit score?

Posted in Credit Cards
Credit Card
by kate*

Question by Janie: How much of my credit card do I need to have paid to improve my credit score?
When I turned 18 I knew I needed credit cards to grow credit. When I reached the $ 500 limit on my first card and the $ 2000 limit on my new card when I found that this was not good for my credit. I hear that as long as you don’t spend more than half of the available balance your credit will be fine. Is this true?

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Sep 15

My credit card balance is over 50%. How long will it take my credit score to go back up?

Posted in Credit Cards

Question by Casey: My credit card balance is over 50%. How long will it take my credit score to go back up?
Hi. I recently just got my first credit card ever and used it to make a $ 1600 purchase. The credit limit is $ 3000, so obviously I’m over 50% of the balance, and I just learned that’s bad for credit scores. I expect to be able to pay off the purchase in the next two or three months. Will my credit score go back up immediately after I get the balance on my card down, or will it take a while? Thanks.

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Answer by Hawaiisweetie
It will take awhile, it isn’t as much about how much you have on your card, but the fact that you make your monthly payment on time, and the time you have the card. Your credit probably took 1 point ding, I wouldn’t worry about it, just continue to make minimums or much higher each month and then when you get it to 0 let it sit there, you need to build up history on the credit card. Good Luck

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Jun 8

What happens to credit score if you close a store credit card?

Posted in Credit Cards

Question by bluetsuki32: What happens to credit score if you close a store credit card?
I have a few store credit cards (Macy’s, Banana Republic, etc) in addition to a major credit card. I want to cancel some of the store credit card, but I don’t know how that effects my credit rating. I think closing credit cards in general lowers credit scores, but what about those store cards?

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Answer by Roy M
Just never close out your oldest credit card, or the one with the most credit. This erases your oldest piece of credit history and will damage your score substantially.

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