Credit Utilization Impact on Credit Score

Sedul wrote: ↑ Hello,

I am wondering what is the impact of maxing out a Unsecured Personal Line of Credit of say e.g. 100,000 and carrying over - but paying the interest due?

Can and will the banks who offer the PLOC raise your interests, reduce your credit limit / make you pay outstanding?

My understanding is that a healthy credit utilization is around 30% (Outstanding Debt vs Credit Limit across all Credit (including Credit Cards etc.))

Thanks,

jeff1970 wrote: ↑ 1) Technically they can ask for all the money back whenever they decide.
2) Technically they can raise your interest, lower your limit, whenever they decide.

Technically, the above doesn't usually happen.

A good utilization is under 30%. And under 10% is better. Maxing out your PLOC could warn the creditor that you're having financial issues. It hurts your credit (so getting new credit is harder).

Sedul wrote: ↑ From an overall outstanding credit evaluation, it's best to have <=30% utilization.

However, if I had 3 LOC from 3 different Banks/Creditors of say 100k each, hypothetically speaking, is it best to take at most 30k from each one (as oppose to 100k from one LOC) so to not raise flags with that one bank.

If that is the case, it would be ideal to have multiple LOC from different creditors to spread it out.