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Credit Utilization

All articles tagged with #credit utilization

personal-finance2 years ago•3 min saved

Overcoming Roadblocks to Improve Your Credit Score: Expert Advice

Nearly 4 in 5 Americans are trying to improve their credit scores, but 50% face barriers, particularly due to low credit limits. A low credit limit can result in high credit utilization, which negatively impacts credit scores. Experts recommend asking for a credit limit increase, updating income information, and paying balances ahead of the statement closing date to improve credit utilization. Applying for a new card can also increase available credit, although it may temporarily lower the credit score. Despite record-high average credit scores, 58% of Americans worry about hurting their credit scores in the next year, likely due to concerns about financial difficulties and debt management.

via CNBC|

#credit-limit #credit-score #credit-utilization

personal-finance2 years ago•5 min saved

The Surprising Impact of Paying Off My House on My Credit Score

Paying off a mortgage can cause a temporary drop in credit score, even for those with a perfect 850 FICO score. This is because the credit-scoring algorithm considers having a low installment-loan-balance-to-loan-amount ratio less risky than having no active installment loans at all. However, as long as positive credit behaviors such as on-time payments and manageable debt levels are maintained, the score should rebound over time. Achieving a perfect credit score is not necessary for favorable credit terms, as lenders typically have different tiers based on credit ranges.

via The Washington Post|

#credit-score #credit-utilization #fico

personal-finance2 years ago•3 min saved

The Optimal Credit Score: No Benefit in Scoring Higher, Expert Claims

While having a perfect credit score of 850 is impressive, there is no practical benefit to scoring any higher once you reach the mid-700s, according to Ted Rossman, Bankrate's senior industry analyst. Generally, a credit score between 740 and 750 will qualify you for the best terms with credit cards and auto loans, while a score of 760 will typically get you the best rates on mortgages. Every 20 points can make a significant difference in credit terms, so it's important to aim for a good credit score. To improve your credit score, focus on lowering your credit utilization rate by paying down outstanding debt and consider asking your lender for a credit limit increase.

via CNBC|

#benefits #credit-score #credit-utilization

personal-finance2 years ago•9 min saved

"Mastering Your Credit Score for Financial Success"

Achieving an 800 credit score takes time and diligence. To reach this level, you must have a nearly perfect credit history, including consistent on-time payments, low credit utilization, and a healthy mix of credit accounts. Maintaining an exceptional credit score requires monitoring your credit report regularly, reporting your bills to your credit file, and avoiding errors. An 800 credit score can lead to many benefits, such as lower rates, better credit card offers, and lower insurance premiums.

via CNET|

#credit-history #credit-score #credit-utilization