Question

Joe has the following credit cards. He has an account with Capital One with a $6500.00 credit limit. Joe has an $2,900.00 limit on his Discover Card, $4500 on his Visa, and $7K limit on his Chase Bank Card. Finally, Joe has a Slate Card with a $6100 credit limit. What is the maximum dollar amount of available credit that Joe should use in order to maintain a favorable credit rating?

Answer 1

Answer:

Explanation:The amount of available credit that Joe should use to maintain a favorable credit rating depends on his personal financial situation, but a general rule of thumb is to keep the balance on all credit cards at or below 30% of the credit limit.Using this guideline, Joe's maximum available credit usage would be:Capital One: $6500 x 0.30 = $1950Discover Card: $2900 x 0.30 = $870Visa: $4500 x 0.30 = $1350Chase Bank Card: $7000 x 0.30 = $2100Slate Card: $6100 x 0.30 = $1830Total maximum available credit usage would be $1950 + $870 + $1350 + $2100 + $1830 = $8100