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21856business
Joined: 01 May 2009
21856business's page
Posts: 1
28 Magic Points
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Subject: Effect on FIco
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Fri May 01, 2009 10:05 am
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| Say I have two credit cards both with limits of $5,000 and i pay each down to $2400 balance, which is less than using 50% of available credit. How would that effect my fico score. Thanks |
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fireyone
Joined: 26 Feb 2008
fireyone's page
Posts: 4285
127 Magic Points
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Fri May 01, 2009 10:36 am
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| Hello, welcome to the forum. This should keep your score on the good side as long as you have no delinquent accounts. You should always remember to never use your entire credit limit. This does not look good and is not good for your credit. I believe they say it is actually lower than 50% (the amount you should use of your credit). Others will know what that exact amount is. Keep making regular payments above the amount due and this will help even more because it will establish credit history. Also never close an account, especially one that is plder and in good standing. |
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cbass1017
Joined: 01 Feb 2008
cbass1017's page
Posts: 143
Location: PA
1528 Magic Points
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Sat May 02, 2009 5:04 pm
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yes 21856biz, the correct amount to be at is 30% or less of your credit balances to look the best on your credit reports. Lenders really like to see that you have the ability to have credit available to use but not totally be relying on it to get by.
It would also really help your credit if you currently have any installment loans (car, home, personal) being reported on your credit reports as well.
_________________
Scott McKay
FreeOnlineCreditGuide.com |
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Firang
Joined: 28 Apr 2009
Firang's page
Posts: 56
-25 Magic Points
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Sun May 03, 2009 3:38 am
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I will just add to the above advice that make sure you are not delinquent on any of the payment and thus you will be able to create a good credit history.
if you are current on the payment then surely this will improve your fico score. |
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fireyone
Joined: 26 Feb 2008
fireyone's page
Posts: 4285
127 Magic Points
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Sun May 03, 2009 3:08 pm
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| You should stay current on all your bills but the ones that really mean alot our your monthly utility bills. Alot of people do not understand that when they get behind on these bills it really makes you look bad to a creditor. If they see you can not payh your regular monthly bill or fall behind often then they will be discourage from lending money to you. My hubby had a bill that was not his with an electric company. Soemhow his mother got the bill in his name when hers became delinquent. It took a lot of work to get it removed from his name and no bank would give us a loan until it was taken care of. Soem really great p[eople at the local bank showed us how to straighten it all out. |
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GarySnober
Joined: 08 Apr 2009
GarySnober's page
Posts: 67
6 Magic Points
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Sun May 03, 2009 9:01 pm
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| Yes this will help your score and help it increase. Having ur credit limits under 40% of your entire cc limit will help increase ur score in the long run. |
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