What percentage of credit limit is ok to use, before asking for limit raise?

[wildgeese]

So I haven't been here for a while. I finally got my first credit card, my score is still great, 747 I think. They've only given me a limit of $3000 however. So, since I've been paying it on time for eight months now and using the card regularly, and I have a big life event coming up soon, I thought now would be a good time to ask to raise my limit a little.

They rejected me on the basis that I'm using too much of the credit line- despite that I've done everything right apparently I'm too close to that $3000. Well, when you use $2000 and pay it regularly, it's still a very small amount! I had no idea this was a problem.

But since apparently this is one of their criteria, here is my question: What amount- I guess it would be a percentage- should I get my limit down to to ask them again? I asked the credit company; they said they can't give me info. on the rejection, and their letter of course does not state this. It's almost a catch-22- I practically have to not use the thing to keep it so low, but of course that would disqualify me too.

Thank you to anyone who has real info. on this!

[swirlgirl]

You're talking about utilization. Most people say to keep the balance somewhere between 10-35%. However, I would pay it off if possible. I'm not a believer in keeping a balance just for credit scoring reasons.

[isislc]

You're talking about utilization. Most people say to keep the balance somewhere between 10-35%. However, I would pay it off if possible. I'm not a believer in keeping a balance just for credit scoring reasons.

Actually, as you said Swirl, this is only good in maximizing your Fico score. As for percentage usage before requesting a limit, I would have to put it at around 40%. You are able to tell when you have a CC account that has a "love button" posted for CLIs. Now I know for a fact that BoA is one of the CCs that the "love button" will disappear if 50% of your credit line has been used. That's why I say the safe mark will most likely be around 40%. Hope this helps.

[Dre]

I've read/heard the magic number is: 25% of the credit card's limit.

Put what expenses you can afford to PIF at the end of each month.

[wildgeese]

see, i am getting mixed reviews on this. i put my question up at suze orman's site too. :

my goal is to keep my score high and possibly improve it, and also build a strong credit history, which i think means very slowly increasing my limit and using that responsibly. (for example, if i ever need a loan in the future for a home or a car, i need more than a high score.)

the contradiction in advice to do this seems here: i have to use the card regularly in order for them to raise my limit, and keep something on it. but i have to keep it down below a certain amount or they won't raise it either.

maybe i'm looking at this wrong. maybe it's not a contradiction. maybe i'm just looking at a very small range? so like, 25% would be too low, but 50% would be too high?

anyone?

thank you so much for your feedback on this so far! this forum is so helpful!

and by the way.... what is "PIF?" thanks!

[Denita]

...

and by the way.... what is "PIF?" thanks!

PIF = Paid in Full:)

[Dre]

If this would help you: Put your monthly expenses on your credit card. You can choose to PIF at the end of each week, month, or each day.

This will help you stay around the %, but without going into danger around your credit limit or close to it.

Think of your checking account as your own bank; all your money is held there, unless you need to pull cash out. For other expenses, use your credit card and then go home to make a payment for the transaction(s) for the day.

Good luck with everything!