Quote:
|
Originally Posted by Mus24
NoSoup, a few days back my bank has sent me a platinum visa card with a $500 limit,no annual fee and no secured deposit.
Next day CapitalOne also sent a card with $300 limit.Should I keep both?
Why do you think one should never borrow more than 30% of the limit.Even $300 is a tiny limit,so does that mean I should never be making purchases for than $90?What if I use up my credit limit but keep paying the amount well on time...is that okay?
|
For the third time
Quote:
Originally Posted by NoSoup
You can certainly sign up for additional cards as you see fit - however, in my experience, I would stay away from Capital One cards if you are still building your credit. Nothing against the company, it's just they don't report your limit to credit reporting agencies, and often times if you carry a balance the agencies will assume you are maxed out.
|
I wouldn't get the Capital One Card in your case.
Yep, that's correct. You don't want to go over 30% of your limit, if at all possible - even if that's only $90.00.
The reason behind that is because once you get over that 30% limit, the credit reporting agencies will start knocking your score down bit by bit because your debt to limit ratio is too high. The closer you get to the limit, the more it would impact your score.
I wouldn't recommend going over that amount - even if you pay your bills on time each month - for the reason above.