Need a Credit Score Boost

I have clients ask me all the time “Gordon, I pay all of my credit card accounts on time and have never been late… So why then are my credit scores not improving?”

One of the many factors effecting a persons credit score is their amount of outstanding revolving credit card debt. To maximize their credit score potential, paying down credit card debt to 30% of the credit limit will boost a customers credit score.

So lets say a customer uses their credit cards for monthly expenses and then pays them down regularly.  Well, if the lender pulling their score for a loan checks their reports when the balances are above 30% then the credit score will be much lower then what it should be.  Potentially increasing their interest rate or denying their loan!

So for ex… If you have a credit card with a $1,000 credit limit and you always pay it every month on time but your balance is always above 30% of the credit limit or in this case $300. That will adversely affect your credit score and keep it from going up which is what we all want to accomplish! Better the credit, Better the rate, Better the deal, Better the LIFE!!! 

Quick Fix… If you know your about to try and purchase a home and need to obtain financing. And if you are capable try and pay down some or all of your credit accounts to less than 30% of there limit prior to having your credit pulled. This can boost your credit score by 50, 70, even 100 points in some cases.