2007-01-21 04:06:49 · 6 answers · asked by stan 1 in Business & Finance ➔ Credit
yup
2007-01-21 04:10:31 · answer #1 · answered by true blue 6 · 0⤊ 2⤋
Carrying a balance on your credit card only lowers your scor if you are near 50% or greater on one card. It is also negative if you pay late, even one time. Don't keep doing the balance transfer thing and opening new cards, that is negative too. Closing good cards is also negative. Get one card that is basically universal - Discover, Mastercard or Visa. Use it only when necessary and keep it paid off or at least pay more than the minimum. Keep this card active, don't close the account. It is a plus to show proper use for many years. Making only minimum payments is also bad for your credit score. If your minimum payment is $50.45, make a payment of at least $60.00. Besides the note that you paid more than minimum, you won't be paying additional interest on the balance. The credit cards pay off interest and higher paying charges first. The cheap balance transfers are paid off last so don't transfer to a card with any balance, it will cost you and you won't even notice in most cases.
Good luck and use your credit wisely. Doing so will save you in interest rates on not only credit cards but mortgage interest and auto loan interest as well.
2007-01-21 12:26:17 · answer #2 · answered by Coda2 3 · 1⤊ 1⤋
Not necessarily. Just having and using credit WISELY is what the credit scoring system is all about. Utilization, as already mentioned, is a big factor in the FICO scoring model, as is debt to income ratio, length of credit history and a dozen other factors. If you're carrying a balance and you're always close to your limit, that WILL hurt you as your utilization is too high in the eyes of creditors.
Use your credit.. but use it wisely and your score can increase.
2007-01-21 12:27:52 · answer #3 · answered by SciFiDiva 2 · 1⤊ 1⤋
I think it would, as long as payments are made, your score won't go too low. But the best way to improve a credit rating is to pay off the balance every month if you can.
2007-01-21 12:12:31 · answer #4 · answered by Anonymous · 0⤊ 1⤋
It does lower it somewhat, but as long as your balance is not really high and as long as you're making your payments on time and maybe more than the minimum payment, it shouldn't prevent you from being approved for a loan.
2007-01-21 12:16:54 · answer #5 · answered by ♫ frosty ♫ 6 · 1⤊ 1⤋
Fico would like you to be around ideally 33 percent utilization so yeah anything over that will lower your score. But as I always say who pays the bills, you or fico.
2007-01-21 12:10:29 · answer #6 · answered by roger v 4 · 1⤊ 2⤋