I own a credit repair company and thought I would share a little bit of info most people aren't aware of.
30% of your credit score is looking at revolving debts. This means that you MUST have revolving debt if you want to have good credit. For those of you that do not have credit cards, you are missing out on the 2nd largest portion of your credit score!
It's not just about having revolving debts though. It's mostly on how are you using your revolving accounts. Here's how it works. You can never allow the credit bureaus to see that you have spent more than 30% of your available credit limit on each revolving account. Simple rule of thumb is 30% and below, your credit scores will grow. If you allow the bureaus to see that you have spent 31-50% of your limit, your scores will do nothing. So at this point your not hurting yourself but you also are not helping yourself. However, if you allow the bureaus to see that you have spent OVER 51% of your limit, you are already considered maxed out and your scores will drop. The closer you get to actually maxing out your card, the more your scores will drop.
There is a simple way to beat this. The first thing you need to do is find out when each one of your credit cards tell the bureaus what your balance is. You can find this out by calling each one of your credit cards and asking them what date they PRINT your statements on that account. The day they print a statement to be mailed to you is the exact same day they release the balance information to the bureaus. Now it is your job to pay down your balance 2 days before this date. You must allow 2 days for them to attach your new balance to the statement before it prints. Once the statement has printed, you can use begin using your credit card again. You can max it out do whatever you want as long as you pay it down the next month before it reports.
The safe number is 30% but to see a significant increase in your scores you will want to focus on paying it down to 10% before the statement print date. This simple method can increase your scores anywhere from 60 - 80 points instantly!
PM me if ya have any questions!
30% of your credit score is looking at revolving debts. This means that you MUST have revolving debt if you want to have good credit. For those of you that do not have credit cards, you are missing out on the 2nd largest portion of your credit score!
It's not just about having revolving debts though. It's mostly on how are you using your revolving accounts. Here's how it works. You can never allow the credit bureaus to see that you have spent more than 30% of your available credit limit on each revolving account. Simple rule of thumb is 30% and below, your credit scores will grow. If you allow the bureaus to see that you have spent 31-50% of your limit, your scores will do nothing. So at this point your not hurting yourself but you also are not helping yourself. However, if you allow the bureaus to see that you have spent OVER 51% of your limit, you are already considered maxed out and your scores will drop. The closer you get to actually maxing out your card, the more your scores will drop.
There is a simple way to beat this. The first thing you need to do is find out when each one of your credit cards tell the bureaus what your balance is. You can find this out by calling each one of your credit cards and asking them what date they PRINT your statements on that account. The day they print a statement to be mailed to you is the exact same day they release the balance information to the bureaus. Now it is your job to pay down your balance 2 days before this date. You must allow 2 days for them to attach your new balance to the statement before it prints. Once the statement has printed, you can use begin using your credit card again. You can max it out do whatever you want as long as you pay it down the next month before it reports.
The safe number is 30% but to see a significant increase in your scores you will want to focus on paying it down to 10% before the statement print date. This simple method can increase your scores anywhere from 60 - 80 points instantly!
PM me if ya have any questions!
