Welcome Guest ( Log In | Register )

> 

CrowdFunding Related Information

 
Reply to this topicStart new topic
Is It Bad To Have A Credit Card Balance That Is Always Close To The Limit?
MoneyRainmaker
post Apr 20 2010, 09:58 PM
Post #1


MMG Member
**********

Group: Member
Posts: 324
Joined: 8-January 10
Member No.: 194,194



I have only 2 credit cards. One of the cards has a 17% APR. I have a credit limit of $1000 dollars on it, and I tend to only pay $100 dollars a month, and then spend again on it. So I'm always very close to the limit. Someone recently told me that this is bad for my credit. Is that true?


--------------------
MoneyRainmaker
Go to the top of the page
 
+Quote Post
Paid Advertisement
 
Go to the top of the page
 
Rhyker
post Apr 21 2010, 09:14 AM
Post #2


MMG Member
Group Icon

Group: Lifetime Supporter
Posts: 2,120
Joined: 15-October 07
From: Europe, NL
Member No.: 122,149



any credit is not good, but you knew that already. What makes creditcards 'dangerous' is the high APR rate. Get red of the debts, get rid of creditcards and get debitcards. Control your spending. Easier said then done, but worth it.


--------------------
Go to the top of the page
 
+Quote Post
Uncle Awesome
post Apr 21 2010, 10:19 AM
Post #3


MMG Member
Group Icon

Group: Admin
Posts: 1,606
Joined: 8-March 07
From: Washington
Member No.: 97,520



I have to disagree. There are benefits to using Credit cards. For one, it will help build your credit score if you pay them on time. Secondly, I use a rewards card to earn 1-3% back on all my purchases. I pay off the balance each month.


--------------------
Go to the top of the page
 
+Quote Post
MoneyRainmaker
post Apr 21 2010, 10:05 PM
Post #4


MMG Member
**********

Group: Member
Posts: 324
Joined: 8-January 10
Member No.: 194,194



I actually agree with Uncle A since we need credit to to build our credit history and get good scores. But of course responsibility is the key to building good credit. I know that the APRs are high that's why I ask if it is bad to have my card balance always close to the limit, because if it is, then I would have to stop doing it.


--------------------
MoneyRainmaker
Go to the top of the page
 
+Quote Post
Yippee
post Apr 22 2010, 06:14 PM
Post #5


*** TOP PANDA ***
Group Icon

Group: Admin
Posts: 10,593
Joined: 11-October 04
From: Reality
Member No.: 461



"Available Credit" is one of the criteria they use in your FICO score for your credit rating. If your cards are always at or close to the limit, then you have little or no available credit left therefore it lowers your score. Start paying them down and your score will improve.


--------------------
Go to the top of the page
 
+Quote Post
Paid Advertisement
 
Go to the top of the page
 

Reply to this topicStart new topic
1 User(s) are reading this topic (1 Guests and 0 Anonymous Users)
0 Members:

 

Skin designed by IPB Forum Skins

FEATURED AD - NEW STATIC AD



Advertise on MMG Today!


Advertisement