How does credit limits on credit cards affect your credit status?

Junijuni

So I have 3 credit cards:

1. Limit 8,000 using 5,000 (int. 0.18)
2. Limit 1,200 using 1,100 (int. zero)
3. Limit 900 using zero

If I paid off all my credit cards would by credit rating be adversely effected?

Or would it instead be improved if I pay off the full balance of my credit card bill each month?

Does having credit cards that you don't use adversely affect your credit rating? I would like to feel "safe" with a credit limit in case of an emergency.

thebritishbloke

You'd be better off having no debt, both for yourself and your credit report.

Once you can afford to pay off your debt, you should pay off your cards in full every month. It shows you're a responsible borrower and you'll be able to get the better deals on the market.

Doesn't really matter too much if a card's dormant, so long as you keep an eye on it so someone doesn't use it without your permission.

You shouldn't really use more than 30-40% of the credit limit at any given time. If you have debt, that's unavoidable though.