Conversely, when your credit score goes south, it can be disastrous.
Lenders will charge higher interest rates, costing you more and more money every time you need credit.
A job change or loss, moving to a new city, medical costs and any other number of reasons may cause your bills to increase and credit utilization to go up with them.
If that happens, you can consider a second credit card to help improve your credit score.
It is worth knowing that it takes more time to repair a bad credit score than it does to build a good one.
Losing ground with your credit score could cost you hundreds or thousands of dollars in higher interest rates, and add considerable time to paying off your debts.
Credit utilization is the percentage of available credit used during a billing cycle.
There are no exact cutoffs for good scores or bad scores, but there are guidelines for each.If you do all of that, you can petition the card companies to raise your credit limit to ,500 and make it easier to stay under 30% utilization.You might even be able to go back to using just one card.In this scenario, your problem is solved, but only if you are disciplined about tracking card use.That means keeping constant tabs on how much is spent on each card, setting up alerts to check spending totals and even paying down the bills in the middle of the month so you’re sure to stay under 30% usage.