Importance of paying maxed out credit cards first
Posted on May 8th, 2007 by Financial Diva
Here is a handy tip that many women don’t realize. When your credit cards use more than 50% of the credit limit (ie. $5000 or more charged when your limit is $10000) you will get more points cut from your credit score. You should always try and keep less than 50% charged to your cards, but preferably no more than 30%. The larger the gap between your balance and your credit limit, the more points you will get for your credit score.
Use this free worksheet to track your percentages. Then you can see where each card currently is, and which cards have the highest percent. You will probably be surprised!
Filed under: Debt, Worksheets
Thanks for valuable information. Credit score allows you to chose the card of your dream.
i wish I had known better when i kept receiving those credit card offers in the mail. I was approved right away for my ver first credit card at the age of 25 zn dthey kept coming after that. now just one year later i’m in a debt managemnt program because the interest rates on those “bad boys” were kiling after i nearly maxed them all out. Now i am trying to get my finances back on track and boost u my credit score to get a house next year. i don’t think that’s possible do you have any suggestions on what i can do to improve mycredit score???? please help!!!!