debt to credit ratio/ increase credit score?
im trying to figure this whole thing out. so say i have a credit limit on my first card, which is 500. on this months statement i had a balance of 326. so i paid 176 this month. which brings it down to 150. ive read that i should keep it at 30% ratio. im now thinking twice that the debt to credit ratio is how much i spend that month? so this means that this coming month i should spend anything on the card because it will go over 30%. i also have a amex with a 2000 limit. i spent 1019 and paid off 519 this month, bringing it down to 500 balance. did i do that wrong too? should i have just paid off the whole thing? i also have a 0% apr on the amex card. the question is, i guess, is if i paid my balance correctly? or if my balance right now is what i should have spent this coming month. if it is, should i not use my credit card this month?
Public Comments
- Keep them all under 30%. They want to see you spending reasonably and paying on time while keeping the balance down. Paying on time is the single most important thing. Other tips, keep the number of cards you have down, don't apply for a lot of credit at the same time, unless you're loan shopping for a car or home (that's expected and reasonable and won't affect your score).
