If I'm supposed to stay 35% below my available balance on my credit cards to raise my credit score?

what do I do with the card when I've spent 35% of it? I know it's not good to close the account %26amp; it's better to keep it open, but can I still cut it up so I won't be tempted to use it?|||There is a huge misconception about credit cards and credit scores these days.





A little explanation....





Your credit score is based off of a constantly changing model based on current risk factors in different industries and is impossible to calculate at any given time (I have asked engineers at Transunion and Experian on Multiple occasions).





The heaviest weight for your score is going to be the depth of positive credit (meaning how long you have had an account open and have been paying the monthly payments in a timely manner). The depth model is based off of a 12 month tier. The first 12 months has the biggest effect, then at 24 months the account will further contribute positively to your score, finally the 36+ tier shows that you have a solid history with that account.





The next type of trade line (accounts are called trade lines) that has a significant weight is Installment debt (Mortgages, car loans, Student loans in repayment, etc.). You grab an account or two of this type and pay on it for a few years and you will be sleeping pretty easy at night.





The third type of trade line is open ended or revolving. This includes credit cards and collections. Obviously collections will never help your credit. The reason these "myths" of the 35% or 50% balance to limit or pay it off every other month rules come out is because credit cards are the most abundant and easiest to get your hands on trade line and clients hope that massaging these debts will help their credit. Keeping a good level of room on your cards will show the credit bureaus that you do not have any issues with liquidity and can help maintain a healthy credit score.





Definitely do not close the accounts and re-open them like you are playing some old nickel arcade game, this will do nothing good and will potentially damage the depth of your credit (remember when I stated above that accounts need to be open at least 3 years to get the full effect) and in turn possibly lower your score.





As always the best advice is spend within your means, keep a "just-in-case fund" so you don't have to use credit cards for emergency and always make your payments on time.





Good Luck!|||You could.





However, it would be better to repay the 35% that you have used (bring the balance down to zero), then use it until it reaches 35% again, repay it again, etc., and keep repeating this process.|||Sure..and when you get it paid down, you can always request a new one. BTW, the 35% is just a guideline...in actuality, you should have only balances you can pay off each month. The 35% is really an upper limit.