Credit Trap: Maxing Out Your Credit Card
In the credit game, there are a number of traps that will keep you from achieving a high score. Trap #2 is maxing out your card. Your balance has the second biggest impact on your credit score.
If your balance is higher than 30% of your credit card limit, then your score will drop. This means, if you have a card with a $500 limit, then you should charge no more than $150 on your card. If you charge more than $150, then your score will start to drop.
You can find out your charging limit by using this formula:
Your Credit Card Limit x .30 = Your Charging Max