Card Payments To Maximize Your Credit Scores
In “Credit Card Utilization”
Why Credit Cards Are Good For Your Credit Score
Credit card utilization (balance in relation to limit) is a key role player in your credit scores. Your scores can sometimes significantly increase or decrease based upon the balance reporting to the credit bureaus. In essence, 30% of your FICO scores (165 points) are a factor in your overall credit score.
One of the statements I often hear when consulting my clients about their credit, “I make my payments on time on my credit cards, I don’t understand why my scores are low. I pay off my cards every month”.
My question at that point is “When do you pay off your cards?” The answer I typically hear “on the due date”.
The problem with that is your balances have already been reported to the credit bureaus. Almost all credit card banks report your balances at the STATEMENT DATE not the DUE DATE. Did the little light bulb turn on…
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