This week’s credit tip: Doing a bit of a 2 for 1 today.

 

1.       Do you know the five different components of a credit score?  They are…(1) Credit History -35%  (2) Current Balances - 30% (3) Length of Credit History - 15% (4) New Credit - 10% and (5) Types of Credit - 10%.

 

2.       On this note, let’s talk maxed out credit cards.  With the exception of negative data, the fastest way to lose (or raise) a credit score is with revolving balances.  Did you know that maxing out your credit card can cost you between -10 to -45 points?  Unlike some damage, the good news about revolving balances is that just as quickly as you lose the points by running up the balances, you can get them back by paying them down.  Reminder - according to the bureaus it is optimum for your credit score to keep your revolving balances at approximately 35% of your limit.