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Hi,
In trying to rebuild credit. Now, if I have a new account say activated on sept with a 500 dollar credit limit, I should only have a balance of no more than 170.00 at any given time?
Do I need to find out when the cc company reports to the bureaus? Or just to be on the safe side only always carry a low balance? I'm trying to rebuild my credit after a chapter 7 bk and realized that I don't know half of what I thought I did in regards to managing credit.
I am also trying to get a car loan in 8 months.
credit utilization
Hi Vic,
A balance of 170 on a credit card with $ 500 limit means your credit utilization rate is 34%. However, it is always better to keep your utilization rate below 30%. If your credit utilization rate grows it can hurt your credit. It is advisable to carry low balance as creditors tend to charge you higher interest if you carry high balance on your card.
The things that you can try to know from the creditor is when your monthly statements get reported.
Thanks,
Aaron