Reduce credit card balances below 45.91% debt to credit limit ratio.


We often find that because of emergencies we have run up our credit cards and are close to maxing them out. This is very costly to a credit score because it shows the credit bureau scoring modules that we are in need of credit more than not.  We are then “high risk” and our scores will drop significantly. .  


(Remember that debt to credit limit ratio is how much debt you have to how much credit you have available.  Staying below 45.91% will increase your credit score while going over will cost you points.)


There are several thresholds that you need to be aware of that will cost you more points or give you more points when you cross over them.  Less than 15.89% used credit is the same as a zero balance, except for 1 crucial point.  If you have even $1 on an account, that is an “account with a balance” and will figure into another crucial tip that we will discuss later on. 


For now, never, ever, ever, ever go over 45.91% of your credit limit and you will save yourself some very serious headaches.  Maxing out a credit card could lose you 100 to 120 points… instantly!