If you do all of that, you can petition the card companies to raise your credit limit to ,500 and make it easier to stay under 30% utilization.
You might even be able to go back to using just one card.
Lower scores indicate borrowers may be risky investments because of late payments or overextended use of credit.
There are no exact cutoffs for good scores or bad scores, but there are guidelines for each.
Credit scores are derived from credit reports, which document your borrowing and repayment history.
This information is what’s used by Experian, Equifax and Trans Union, the three major credit reporting companies.
The damage to your score starts when you utilization rate goes over 30%.
If you spend 0 a month with the same card, your credit utilization soars to 50%.
That is an indication to credit agencies that you are taking on more debt than you can afford, thus your credit score drops.
How much it fluctuates depends on how reliable you are at repaying debt on time, especially credit cards and installment loans.
When you use credit more often, whether it’s by taking on more credit cards, getting a mortgage, taking out a student loan or auto loan, your credit score changes to reflect how you deal with the responsibility of more debt.