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Not only is your overall score based upon payment history which is very important, it is also based upon the credit to debt ration, "maxing out" an account has an extremely negative affect on the basic credit rating.

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โˆ™ 2006-02-18 22:25:35
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Q: If your FICO score is 581 and you have 2 credit cards both almost maxed but you have no late payments no collections and low credit hits why is your score so low?
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Related questions

Can you file for bankruptcy if your credit cards have gone into collections?


Do London cabs accept credit cards?

Yes if you are booking them online or by call they do accept payments by credit cards.

Should you make payments on some credit cards if you cannot on all cards?


What does no payments no interest mean?

As far as credit cards/credit accounts, you will not have to make any payments and no interest will be added till said date.

Does Bank of America take credit cards for mortgage payments?


If you are planning to file bankruptcy can you stop making payments on your credit cards?


How many credit cards should you have to build credit?

Number of credit cards do not matter, what matters is your payments. As long as you pay in full every month and don't go over 30% on your credit cards you should see maximum results..

What services are offered by the Credit Boards website?

The website, Credit Boards is a resource for the consumer who is looking to educate and inform themselves about credit, credit cards, collections, and bankruptcy.

If you have 3 credit cards in collections and were told not to pay because it won't help your credit score but every month the balance keeps going up isn't this hurting your score even further?

You were given bad advice. You should attempt to work out payments with the creditors.

Types of credit?

There are four basic types of credit. Service credit is monthly payments for utilities, loans let you borrow cash, installment credit, and credit cards.

Why are aqua cards good for people with bad credit?

Aqua credit cards can be good for people with bad credit because they offer flexible payment dates as well as manageable monthly payments. You can establish good credit history with Aqua cards that will help your overall credit rating.

What makes your credit score drop?

Late payments, No-Payments, Over the credit limit (Maxed out credit cards), Not having a good mixture of credit (Revolving Account, Installment Loan, Home Loan, Etc), and past history.

Where can one make online payments for credit cards?

In order to make online payments for credits cards, it is necessary to set up an online account for the credit card. This will require requesting an online account from the bank that issued the credit card. From there, it is possible to access the credit card bill and make accounts as needed.

Is it possible to go outside the country even if you have an unpaid credit card account?

Unpaid credit cards won't effect your ability to travel. If left unpaid, they will be charged off and likely assigned or sold to a collections agency. The collections agency will continue to attempt collections, and your credit will be impacted negatively for seven years.

What credit cards options are offered by Capital One for online payments?

Capital One offers ten different credit cards, depending on one's needs, wants, and current credit score. Some of these include the VentureOne, the Classic Platinum, and the Cash Rewards. All credit cards are able to be used for online payments, and information can be viewed from one's online banking account.

What is the advantage of using Citibank Online Credit Cards?

The advantages of using Citibank Online Credit Cards is the ability to access accounts and services online. Similarly, Citibank Online Credit Cards mean online payments are able to be made, for example.

How many credit card transactions were completed online in 2007?

From the Federal Reserve's 2007 Payments Study Press Release: "Among the three main types of electronic payments, the annual use of debit cards increased by about 10 billion payments over the survey period to 25.3 billion payments in 2006. Debit cards now surpass credit cards as the most frequently used electronic payment type. Over the same period, automated clearinghouse (ACH) payments grew to 14.6 billion, an increase of almost 6 billion payments. Credit cards grew by almost 3 billion payments to 21.7 billion in 2006. " Since this is a fairly mature market figure a growth rate in 2007 equal to 2006 grow rate of 13.8% and you get an decent estimate of 24.7 billion in 2007.

In what ways can a person repair their credit report score?

Lexington Law is leading credit repair law firm. Lexington Law offers helps you take action and repair your credit. Lexington Law has helped clients remove millions of collections, late payments, cahrge offs, liens, bankruptcies & more from their reports

If you pay a collections account in full and have no credit cards or other debts how soon can your score go up?

paying off bad credit will take about 60 days to have an effect on your credit score. But, if you don't have any credit cards you will never have a good credit score because no one is giving you credit.

What are functions of debit and credit cards?

Credit cards are issued to customers of companies who offer lines of credit. The card can be used to make purchases or payments in stores and online. Debit cards on the other hand are issued by banks or prepaid debit card companies. They have the same role as a credit card allowing consumers to make payments or purchases in stores and online, but can also be used to withdrawal money from an ATM.

What are merchant services rates used for?

Merchant service rates are used to help streamline incoming payments. It is also used to accept payments through cards, usually credit and debit cards.

Can adding a second card holder to your credit account affect your credit score?

Not if you are responsible for all of the loans or credit card payments on your credit report. But, if the second card holder is responsible for any payments on your cards, and doesn't make them, then it can cause your score to lower.

Why not make minimum payments on credit cards?

You pay longer & more interest overall.

If you fail to pay your credit card can you be charged with fraud?

READ YOUR CREDIT CARD AGREEMENT It is not credit card fraud. If you do not make payments on your credit card, it means you defaulted. If you maliciously obtained credit cards and charge up limits without any payments, it might be considered fraud

Which data is used to determine credit score?

Number of loans, credit cards, and late payments are used to determine your credit score. In addition, how much open credit you have is also used.