How it Works
Free VS Paid Rent Reporting Services
Rent Reporters
Self Financial Rent Reporting Service
Simple Process
Score Impact
90 Day Guarantee
No Credit Score Explained
Do You Have Negatives?
With Landlords
With Family
With Property Manager
CPNs Are NOT Legal
FAQ’s
Pricing
Learn
Avoid Pitfalls
Get Credit Ready Podcast
Credit Help Auto Loan Refinance
Credit Help Credit Card Usage
Credit Help Credit Card Maxed Out
Credit Help Late Payment Penalties
Credit Help Too Many Open Accounts
Credit Help Hard Inquiries
Credit Help Collections
Credit Help Credit Builder Loans
Credit Help Student Loans
Reviews
Google Reviews 4.2 Stars
Trust Pilot Reviews 4.8 Stars
In The News
Free VS Paid Rent Reporting Services
Partners
Refer a Friend
Business Partners
Refer Business Partners
Partnership Agreement
Media Inquiries
Members
1on1 Credit Mentoring Session
Install App
Podcast
Update Credit Card
I Moved
Refer a Friend
Cancel Membership
Privacy Policy
Contact Us
720-615-0365
About Us
We Are Hiring
How it Works
Free VS Paid Rent Reporting Services
Rent Reporters
Self Financial Rent Reporting Service
Simple Process
Score Impact
90 Day Guarantee
No Credit Score Explained
Do You Have Negatives?
With Landlords
With Family
With Property Manager
CPNs Are NOT Legal
FAQ’s
Pricing
Learn
Avoid Pitfalls
Get Credit Ready Podcast
Credit Help Auto Loan Refinance
Credit Help Credit Card Usage
Credit Help Credit Card Maxed Out
Credit Help Late Payment Penalties
Credit Help Too Many Open Accounts
Credit Help Hard Inquiries
Credit Help Collections
Credit Help Credit Builder Loans
Credit Help Student Loans
Reviews
Google Reviews 4.2 Stars
Trust Pilot Reviews 4.8 Stars
In The News
Free VS Paid Rent Reporting Services
Partners
Refer a Friend
Business Partners
Refer Business Partners
Partnership Agreement
Media Inquiries
Members
1on1 Credit Mentoring Session
Install App
Podcast
Update Credit Card
I Moved
Refer a Friend
Cancel Membership
Privacy Policy
Contact Us
720-615-0365
About Us
We Are Hiring
Maxed Out Credit Card Penalty
Why is this important?
A single credit card over 90% usage is considered MAXED OUT
This can cause your credit score to drop 80+ points
Even a card with a $300 limit and a $270 balance is considered 90% MAXED OUT
Carrying ZERO balance and keeping the card on AutoPay is the easy way to avoid this penalty
Below are two examples of maxed out cards and the quick recovery after paying the balance in full
This penalty can go away fast
Carrying ZERO balance and keeping the card on AutoPay is the easy way to avoid this penalty
Paying the card down 20% can make most of the penalty go away fast
Example: Card with a $300 limit and a $290 balance, paying $150 on the card will gain back about 75% of the points
If you have a large balance in the thousands of dollars, schedule a 1on1 with your Rental Kharma mentor to discuss a plan
Maxing out more than one card
Yes this can compound the penalty and depress your score even more
Your better off to have 1 card with a higher limit than many cards with low limits
This can prevent multiple penalties for what is the same life event
This graph show you how over usage can bring down your credit score
How late payments affect your credit score