I wanted to take a couple of minutes to share my very best tip when it comes to increasing your credit score.
One of those is to pay attention to the balance, it's on your revolving credit. A lot of times it's a credit card or credit cards. There are two main things to keep in mind when we're talking about credit scores and credit cards.
The first is a lot of people think that as long as your credit card isn't maxed out, meaning that if your credit limit is $1000, your balances is no more than $1000, that you'll have good scores. And honestly, what happens is pretty much anytime you go over a 50% debt utilization or 50% of that credit limit, then you can start to get penalized in your credit scores. So one of the fastest and quickest things to do is to work on getting your credit card balances under that 50% threshold. It's even better if you can get it under 30%.
The second thing is that not only is it evaluated on individual credit lines, meaning individual credit card, it's also that cumulative balance. So if you have five cards that each have a $1,000 limit, you want to make sure that your total credit card limits or your total credit card balances don't exceed $2500. It's something helpful to know as you are paying attention to your credit getting ready to purchase a home thinking about refinancing basically just for your overall credit history, health and your credit score to pay attention to those revolving debt balances and how you're leveraging out against those that utilizations.
If I can be of assistance, if you have any questions, I am here to help and I look forward to talking to you soon.
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