Many credit card users can find themselves not knowing what is better when it comes to their credit card usage and payments to help improve their credit scores often leading to it affecting their scores more than helping it move in a positive manner.
You may be asking yourself if perhaps you should leave a balance on your credit card each month. Always having a balance on your credit card can be taken as a sign that you’re using the card often, which can be a good thing. But it can also be seen as having money problems because you can’t pay your debts off regularly.
Paying a credit card balance off each month is one of the best ways to raise a credit score, and more importantly, it doesn’t cost you in interest paid on the balance. Payment history is one of the most important factors in credit scoring, whether you pay on time or not. Your credit utilization rate is another very important factor in your credit score. This is the ratio of your balance to your credit limit. The lower utilization rate, the better your credit score will be. If you’re going to leave a balance on your credit card solely because you expect it to raise your credit score, don’t, this is a myth.
If you’re having any doubts regarding how your credit cards are affecting your credit score, ESPECIALLY if you’ve had one or more late payments we can help you! We have seen a single late payment drop a credit score up to 115 points as even a single late payment will show as a derogatory account in your credit report.
We can definitely help each and EVERY situation, please give us a call at 844-FIX-URCR or http://bit.ly/csaelpappt to schedule your FREE consultation!
*Individual results may vary. Please call for more details and to discuss your own individual situation.