TIL my friend thought a 30% credit card balance was 'good' for his score

We were talking about buying a new TV and he said he keeps his card at about $1,500 out of a $5,000 limit on purpose. He thought using a lot of his available credit showed he was a 'good customer'. I had to explain that using more than 30% of your limit can actually hurt your score, and under 10% is the real sweet spot. I showed him my own score jump 40 points last year just by paying my cards down before the statement date. Has anyone else had to gently correct a friend on a basic credit rule like this?

3 comments

3 Comments

davidkim20d ago

I believed the same thing until my score tanked.

pat78120d ago

That's a tough break, but it doesn't mean the method is wrong for everyone. Sometimes a score drop is just a temporary glitch or bad luck. Have you looked at what specifically changed before the tank happened?

beth27620d agoMost Upvoted

Actually found that tracking daily practice questions helped spot patterns before big drops.