Host: I am at the maximum limit on my card; will it affect my score even if I pay on time?
Markita Aldridge-Woods: Yes, actually it will. You will become a credit risk anytime your credit amount goes over 50% of the balance, and that is because 30% of your score is related to your outstanding balances. So, if you re maxed out of all your credit cards, which you ve never missed the payment in three years, you actually going to have a lower score. Once you cross 50%, it s dangerous score. If you go above 75% of the credit limit, it s dangerous score. So, for instance if you have a credit card and they had balances of $1,000, so let's just say American Express gave a $1,000 and you have charged over $750 on that account, you have gone past the 75% threshold for that account and it s going to actually go down on your score because you are actually going to considered at risk and you are going to be considered what s called maxed out.