Posts Tagged "available credit"

How utilization rate affects credit scores

Dear Experian,

I have been led to believe that a component of one’s overall credit score is the ratio of current credit card balances to one’s total available credit. If one had three credit cards, is each card’s ratio calculated individually, or is it one’s total credit card balance compared to one’s total available credit? Also, I’ve heard that the important thresholds are 30 percent and better yet, 10 percent; is that correct?

– RLS

There is no limit on the number of credit cards you can have

Dear Experian,

How many credit cards can I have? I have eight credit cards. I opened all of them within the last year (total $6,500), plus a loan for a car ($16,000). I am a housewife. My husband pays all my bills on time, but he keeps asking me to get new credit cards. I wonder if it’s damaging my credit history or my credit score. Also, is it shown on my credit report if I apply for a credit card and I do not get approved?

– ARY

Transferring balances shouldn’t hurt credit scores

Dear Experian,

Does the simple act of making a balance transfer lower your credit score and if so how much?

– UOU

The impact of using 99% of your available credit before applying for a mortgage

Dear Experian,

I was looking at my credit report online and it showed that I am using 99 percent of the credit available to me. What does that mean? Also, I know that I have one student loan that is at almost $60,000. How much effect is that going to have on me if I am trying to get a home loan?

– RAH

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