Did you know? If you run up a large balance on your credit cards, even if you pay it off every month, it can damage your credit score? One of the most important factor on your credit report is your credit utilization ratio – the percentage of available credit that you’re using on your credit cards, this is based on individually and in total. The higher the balance the higher the utilization ratio, try to keep this ratio under 20-30%. The majority of credit card companies report the balance due at the close of each billing cycle and report the outstanding balance as of that cycle. The key is to payoff your balance before the closing date! Brought to you by your friends at Lexington FCU together, we grow To keep your score as high as possible, go online and pay your card before the closing date, rather than wait for the bill to come in the mail. Or, if you think your utilization on one card is creeping up too high, switch to cash or another card mid-month.
Posted on: Wed, 16 Apr 2014 19:10:36 +0000
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