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How high credit cards affect your credit score?


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2010-03-24 12:52:05
2010-03-24 12:52:05

High Credit card balance affect your credit score negatively.

See, the debt to credit ratio makes up 10% of your credit score.

This means the amount of money you owe on a credit line. The more you owe, the worse it hurts your credit (maxed out cards do the most damage).

It is recommended to try to be below 30% of your line of credit.

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== == Your overall credit history will determine how your credit is affected by having numerous credit cards. However, having an overabundance of credit cards with high balances or credit availability can negatively impact risk scores if your credit history is questionable. == == == ==

To find your credit score, go to a site such as You want a HIGH credit score, NOT low. The best cards for high credit score are Chase Freedom Visa, Citi Platinum Select MasterCard, and Citi Diamond Preferred.

If your credit score is low (perhaps through defaulting on previous loan agreements or failing to pay credit cards on time) - it signifies to anyone who searches your credit history - that you are a high risk. People who are high risk debtors are more likely to be refused future credit (or only offered high interest credit) - until they can prove they are more disciplined in managing their debts.

probably not, because your consider high risk to the merchant/lender. you probably have some high balances, slow payments and too many active credit cards or/and new credit cards

The credit score requirement for an American Express card greatly depends on the specific card that you are applying for. Most American Express credit cards require you to have a credit score in the high 600\'s.

{| |- | Your overall credit history will determine how your credit is affected by having numerous credit cards. However, having an overabundance of credit cards with high balances or credit availability can negatively impact risk scores if your credit history is questionable. |}

425 is a below average score. you probably have high balances, very slow payments, possibly too many or new credit cards

If you are looking to improve or keep your credit score high, you can start by making sure you have no outstanding bills. If everything is paid for, make sure any new bills, including credit cards - are paid in full and on time.

Absolutely it does! Your credit score is used by credit agencies to determine the amount of risk they are taking on. If your credit score is bad or low then you auto loan rate will be higher. However, if your credit score is good or high then your auto loan rate will be lower.

things that raise your credit score are , having major cards open more than 3 years, and showing good standing with that creditor. you dont have to use a credit card to show good standing. yes paying off high dept will raise your score. and having too much on your cards even if you pay on time will lower it.

In the United States many of the popular credit cards have extremely high interest rates and it varies due to a variety of factors but generally this rate varies from 6% to 12%. The interest rate of a credit card can depend on a persons credit score for example if a person has a bad credit score the interest will be considerably higher than for a person that has a good credit score.

A high credit score means that you have great credit. A high credit score of over seven hundred can help you get a better interest rate on a loans like mortgages.

To answer your question its possible! If you don't use the credit card it is possible that the credit card company will closed your account and for inactivity and this is bad. Here is an excerpt from Phil Turner book The Credit Bible about credit cards and credit score. "Do not close your credit cards accounts - it will affect your credit score. If you already have many credit cards, do not close the accounts because all the damage to your credit score has already been done. Just put the card up and don't use it accept spending small amounts to keep the card active. Credit card companies will close an account if it is inactive with 18 months. Also please note that you want deep credit roots (accounts over 5 years) this will definitely raise your score greatly. So you need old good accounts to get that high score. Reduce the balance of your credit cards to 30% and below of your credit limit. If you have a credit card with a $5,000 limit, your balance reported to the credit bureau should be $1500 and under in order to have an excellent credit score. If you go over this amount it will affect what is called your "utilization rate." Credit score formulas respond favorable to utilization 30% and below. It's a good idea to assess all of your credit cards and align them correctly with this formula. Use the form in the appendix. Please note: if you have an American Express card or card with no preset limits. You will be rated on the highest credit you have charged and the 30% rule still applies. Try using the card to increase your high credit limit by spending more with the card with cash you were already going to use and get that limit up to a ratio that will keep you within 30% of that high credit. This is why if you pay your credit off each month in full will not give you a great credit score." Source: The Credit Bible, Everything you'll Ever Want To Know About Credit.

There are many things you can do to improve your credit score. You can open up a low limit credit card. When dealing with credit cards you want to make sure you do not max them out, this will lower your credit score. If you currently have any credit cards open, pay them off. By having a large amount of available credit on the cards, your credit score will improve. You may also want to try putting something on Layaway or setup for a payment plan on some type of electronic. If you make payment on a TV for example, this will help to raise your credit score. These options are the quickest way to raise your credit score.

Yes, It will inhibit you from most credit cards and loans, you may qualify for some but will pay a very high interest rate.

Once you have paid the credit card balance off it will affect your score the following month. This is because the credit agencies only update your credit once a month. So the month following the payment would reflect the new balance of $0 and the score would be raised at that time.

if you obtain a credit card with a high limit it will not affect your credit as long as the card is in good standings .. however if the card is maxed out it could affect your credit score wich will intern stop you from getting a loan. although it may not stop you from getting your loan but it will affect your interst rates

You have to have active accounts in order to have a credit score. Your credit score can reflect your payments history on installment loans. Pay whatever accounts you have in a timely manner. Control and limit inquiries. Stay away from finance companies. Your score will not be as high as someone who has revolving credit accounts and manages them well. But you will have a score that reflects how you manage the credit you do have. If you have a mortgage, car payment, school loans, and sometimes even cell phone or utility bills that you pay on time, that will raise your credit score.

A credit card may negatively impact a credit history in a few ways. 1. Paying your credit card late will hurt your credit. 2. Keeping a high balance on your credit cards will lower a credit score. 3. Going over the credit limit will negatively impact your credit score.

Sears credit cards are like most credit cards. They are convientient when you are low on cash,. Howver, like most credit cards, they have high interest rates.

Due to the high rate of loan defaults over the past few years, banks rely heavily on a borrower�s credit score to ensure that they will pay back their loans as agreed. � If you have a poor credit score rating and need to apply for financing, there are things that you can do to improve your score quickly.� One of the most effective ways to improve your score would be to pay down your credit card balances.� Having a high rate of credit card utilization will negatively affect your score.� Paying these down will result in an immediate improvement to your credit score rating.�

Many credit card companies offer free credit cards with no annual fee. You are more likely to recieve a card without an annual fee if you have a high credit score. On such credit card company is

A credit report basically contains information about your credit history, whereas Credit score is a number which is generated on the basis of your credit report. Score totally depends upon one's credit record, if history is good, credit score will be high. I always check my credit score free at

Each mortgage company or bank will have their own requirements. In addition to a credit score, there are other factors such as income. A credit score of 604 may be high enough to get a home with a high interest rate.

The absolute highest credit score you can get is 850. Only one out of every two hundred Americans has a perfect credit score of 850. It is very difficult to obtain a credit score that high.

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