Great Tips Jerrad Havins! Ever wonder how credit cards actually effect your FICO credit rating? 30% of your FICO credit score is solely based on revolving debt ratio. Now in this portion of the FICO algorithm the management of your credit cards are EXTREMELY important. If you are looking to be approved for a loan or to maximize your FICO point potential make sure throughout the course of a billing month: Only charge between 1-10% of your limit. Its not so much what you pay each month or pay the balance down too, the balance on your billing statement is what is reported to the credit bureaus not the payment itself. FICO needs data to evaluate risk as a consumer, by only charging a minimal amount throughout the billing month shows you are active with credit but are not dependent on credit, so therefore your risk must be less and appear to be able to manage more, in this case being approved for a loan and your FICO score improving! ~Contact Shawn Sullivan @ 612-747-8200 or Jerrad Havins today for more information we are happy to help!
Posted on: Mon, 17 Mar 2014 16:35:20 +0000