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Amounts of debt in relation to available credit (the credit limit) is one of the factors used in establishing credit scores.
Scoring software does not factor in the interest rates on the accounts.
Here is an interesting website with general information about credit scores.
http://www.moneycentral.msn.com/content/Banking/Yourcreditrating/P38053.asp
What else can I help you with?
Does carrying a balance on a credit card effect a credit score?
Yes but not significantly, unless it is a large amount, close to the maximum limit.
What Experts recommend that if you have a credit card balance you keep the balance below what percent of the total credit limit?
Experts generally recommend that you keep your credit card balance below 30% of your total credit limit. Maintaining this ratio can help improve your credit score and demonstrate responsible credit management. Ideally, keeping the balance even lower, around 10%, is considered optimal for maintaining a healthy credit score.
What three reasons why it is a good idea to establish a discipline of never carrying a balance on a credit card?
Establishing a discipline of never carrying a balance on a credit card helps maintain a healthy credit score, as low credit utilization is a key factor in credit ratings. It also prevents accruing high-interest charges, which can lead to significant debt over time. Additionally, paying off the full balance each month fosters responsible financial habits and encourages mindful spending.
How can a repossession with a zero balance affect a credit score and can it be removed?
A repossession will significantly lower your credit score, regardless of the balance. It will take around 7 years before the repossession is removed from the credit report.
What factors would make your credit score change?
Your payment history makes up 35 percent of your 3 digit fico score. Your debt to income ratio makes up 30 percent of your fico score. 15 percent is based on length of credit history. 10 percent is based on new credit and the other 10 percent is based on the types of credit used.
Does carrying a balance on a credit card effect a credit score?
Yes but not significantly, unless it is a large amount, close to the maximum limit.
How can a repossession with a zero balance affect a credit score and can it be removed?
A repossession will significantly lower your credit score, regardless of the balance. It will take around 7 years before the repossession is removed from the credit report.
What factors would make your credit score change?
Your payment history makes up 35 percent of your 3 digit fico score. Your debt to income ratio makes up 30 percent of your fico score. 15 percent is based on length of credit history. 10 percent is based on new credit and the other 10 percent is based on the types of credit used.
How does having an Amazon credit card impact my credit score?
Having an Amazon credit card can impact your credit score in both positive and negative ways. If you use the card responsibly by making on-time payments and keeping your balance low, it can help build your credit score. However, if you miss payments or carry a high balance, it can hurt your credit score. It's important to manage your Amazon credit card wisely to maintain a healthy credit score.
How does having an Amazon credit card affect my credit score?
Having an Amazon credit card can affect your credit score in both positive and negative ways. If you use the card responsibly by making on-time payments and keeping your balance low, it can help build a positive credit history and improve your credit score. However, if you miss payments or carry a high balance, it can have a negative impact on your credit score.
Once you pay off a high balance on a credit card how soon will that affect your credit score?
Once you have paid the credit card balance off it will affect your score the following month. This is because the credit agencies only update your credit once a month. So the month following the payment would reflect the new balance of $0 and the score would be raised at that time.
Does paying off high balance credit card help your credit?
Yes. Amounts owed accounts for about 30% of your credit score. Ideally your utilization rate should be 20% or less. Paying your credit card balance to 20% or less will improve your credit score.
400 dollar limit on credit card go over credit score?
It should be reported effecting your score, also balance on it can either improve or reduce your score.
What is the credit score impact of transferring your entire balance from a credit card to a new lower rate card account while keeping your old accound open with zero balance?
I've heard that if you keep your old account open (even with zero balance) can actually improve your credit score. The longer you keep credit card accounts open with out generating massive debt the more likely you'll get a better credit score. Depending on how large your balance is will really determine rather your credit score will get hurt or not (some will argue that it will not change your credit score but the answer varies from one opinion to the other) . You will be charged a fee by your previous credit card company though. Do not close your previous credit card account if you wish to improve your credit score, for some credit score companies may use it as a penalty against you (e.g. FICO).
Do you keep or cancel old credit cards with no balance on them Why?
Keep them. This will raise your credit score. Having an active account that you do not use is an excellent way to raise your credit score.
What is the credit score?
850, Im 80 percent sure.
Can a car loan help your credit score?
Yes it can if you keep the payments up, on time. Your bills for rent, electricity, phone and so on are also a big part of your credit score. Your credit score can be a little complicated but, for the most part, if you pay your bills on time your credit score will be a good one. Probably the most complicated part for average people is a credit card. If you have a credit card and your balance always runs pretty close to your credit limit, your credit score will be lower. On the other hand if you owe 10 to 15 percent of your limit it shows that you know how to manage your credit.
