Personal Finance and Investing

Beartracks

(14,312 posts) Tue Dec 16, 2025, 01:38 AM Dec 16

New question: Credit score and credit card usage ratio

I've always heard you need to keep your credit card usage below 30% of card capacity. But is that the rule for each individual card, or is it more important that all your credit card balances added together add up to less than 30% of the credit capacity of all the credit cards collectively?

And here's why I ask.

I have an opportunity to take advantage of a 21-month 0% transfer promo on one of my cards, and there's enough room to transfer almost all my other credit card balances onto it. That's going to max out that one card, while zeroing out (or very nearly so) all of the others. But my total usage among all the cards together will remain about 28%. Will maxing out that one card cause a hit on my credit score even if total usage doesn't increase, and stays around 30%?

13 replies

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New question: Credit score and credit card usage ratio (Original Post) Beartracks Dec 16 OP

I have a very high credit score. multigraincracker Dec 16 #1

good for you. however, zero effort toward any attempt in answering stopdiggin Dec 16 #3

Bankrate.com has a calculator which may help markodochartaigh Dec 16 #2

Thanks a lot for the link! Just used calculator- very handy. tazcat Dec 16 #7

Credit card to credit card MAY affect the score for a couple of weeks until the balances are reported. 3Hotdogs Dec 16 #4

As Dave Ramsey points out, if you have to put it on the card, or take out a loan for it, "YOU CAN'T AFFORD IT." Happy Hoosier Dec 16 #6

I see nothing wrong with the Ramsey plan. It is one of two --- pay high interest first or lowest balance first. 3Hotdogs Dec 16 #8

Dave Ramsey has a monetary worth of around $200 million. markodochartaigh Dec 16 #10

You're right, there. 3Hotdogs Dec 16 #11

Further thought, most of the people contacting Ramsey are in money trouble. They are stressed out. He gives them 3Hotdogs Dec 16 #9

It varies by bureau a bit, but... Happy Hoosier Dec 16 #5

Your last sentence is what I'm thinking. But... Beartracks Dec 16 #12

No big purchases waiting in the wings. Beartracks Dec 16 #13

multigraincracker

(36,844 posts)

1. I have a very high credit score.

Reply to Beartracks (Original post)

Tue Dec 16, 2025, 02:08 AM

Dec 16

I pay the balance off every month. Why would I want to double the price I pay. Made my last car payment in 1983. Living in the third house I’ve paid cash for. Just got my new Honda CR-v.
Helps that I’ve never had kids. When I die my carbon footprint ends.

stopdiggin

(14,919 posts)

3. good for you. however, zero effort toward any attempt in answering

Reply to multigraincracker (Reply #1)

Tue Dec 16, 2025, 02:53 AM

Dec 16

a question asked by the poster.

markodochartaigh

(4,905 posts)

2. Bankrate.com has a calculator which may help

Reply to Beartracks (Original post)

Tue Dec 16, 2025, 02:28 AM

Dec 16

https://www.bankrate.com/credit-cards/tools/credit-utilization-calculator/

tazcat

(211 posts)

7. Thanks a lot for the link! Just used calculator- very handy.

Reply to markodochartaigh (Reply #2)

Tue Dec 16, 2025, 02:57 PM

Dec 16

3Hotdogs

(14,982 posts)

4. Credit card to credit card MAY affect the score for a couple of weeks until the balances are reported.

Reply to Beartracks (Original post)

Tue Dec 16, 2025, 08:03 AM

Dec 16

Using a balance transfer to pay off an unsecured loan will decrease your score.

The danger of a balance transfer is the temptation to resume charging on the old card(s).

Of even more concern, that you are asking about credit score, indicates you are interested in more borrowing.... maybe for a car, lots of smaller purchases, house, whatever....

As Dave Ramsey points out, if you have to put it on the card, or take out a loan for it, "YOU CAN'T AFFORD IT." I am "not without sin." I will be debt free in June of '27. It took me 1 1/2 years to get to the point where I am on the road to having no debt. House was paid off in August. Car, three weeks ago.

Now, I am focusing on the lower interest personal loans that I took out to pay off higher interest credit cards. So I do not discourage you from taking out the "0" loans. Just be careful and plan ahead.

Happy Hoosier

(9,385 posts)

6. As Dave Ramsey points out, if you have to put it on the card, or take out a loan for it, "YOU CAN'T AFFORD IT."

Reply to 3Hotdogs (Reply #4)

Tue Dec 16, 2025, 09:44 AM

Dec 16

Of course, Ramsey's method has you with a "starter emergency fund" of only $1000 until you pay off non-mortgage debt, so until you have a REAL emergency, your credit cards ARE your emergency fund.

Also, I use credit cards for almost every purchase. I pay the balance in full every month. NOT a Ramsey fan.

3Hotdogs

(14,982 posts)

8. I see nothing wrong with the Ramsey plan. It is one of two --- pay high interest first or lowest balance first.

Reply to Happy Hoosier (Reply #6)

Tue Dec 16, 2025, 05:37 PM

Dec 16

A person wanting to pay off debt can't go wrong with either one.

I listen to Ramsey when I am in the car and there is nothing else I want to listen to. My criticism of Ramsey - his focus on Jesus. If Jesus did all that good, why are people in trouble in the first place? Why does DroopyDon get rewarded with more monty than he can ever spend in his (hopefully soon to be shortened) lifetime?

markodochartaigh

(4,905 posts)

10. Dave Ramsey has a monetary worth of around $200 million.

Reply to 3Hotdogs (Reply #8)

Tue Dec 16, 2025, 05:50 PM

Dec 16

He has as much to do with Jesus as lightning does with a lightning bug.

3Hotdogs

(14,982 posts)

11. You're right, there.

Reply to markodochartaigh (Reply #10)

Tue Dec 16, 2025, 07:55 PM

Dec 16

3Hotdogs

(14,982 posts)

9. Further thought, most of the people contacting Ramsey are in money trouble. They are stressed out. He gives them

Reply to Happy Hoosier (Reply #6)

Tue Dec 16, 2025, 05:41 PM

Dec 16

a roadmap to get out of debt ifI they follow it.

Most of them probably will not follow it.

Happy Hoosier

(9,385 posts)

5. It varies by bureau a bit, but...

Reply to Beartracks (Original post)

Tue Dec 16, 2025, 09:41 AM

Dec 16

Generally, you ideally want total usage below 30% AND individual cards under 30%

As I understand it, total usage is more important than individual cards. I use a "luxury" travel card for work travel and sometimes have a carried "statement balance" (but I ALWAYS pay it off before I am hit with interest). Some trips can be expensive and pop the 30% limit. The hit on my score is modest, and corrects fairly quickly if I get it down again.

I've heard that keeping your reported balances below 10% usage is beneficial as well.

I USUALLY have statement balances at 0 and that has a modest positive benefit.

Unless you REALLY need the slightly higher score soon, the money you save on interest will be way more important than a modest ding to your score.

Beartracks

(14,312 posts)

12. Your last sentence is what I'm thinking. But...

Reply to Happy Hoosier (Reply #5)

Tue Dec 16, 2025, 11:06 PM

Dec 16

... I try to research or ask around so there are no surprises. I'm wanting to consolidate onto the card with the 0% promo so I can focus on paying all that debt down without having the interest working against me. After 21 months, I can re-consider my options, but I should have significantly less debt sitting there when I do.

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Beartracks

(14,312 posts)

13. No big purchases waiting in the wings.

Reply to Happy Hoosier (Reply #5)

Tue Dec 16, 2025, 11:08 PM

Dec 16

Although I do have some house repairs I should be planning for soon. But right now I'm wanting to consolidate cc debt onto the card with the 0% promo so I can focus on paying all that debt down without having the interest working against me. After 21 months, I can re-consider my options, but I should have significantly less debt when I do.

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