Credit Repair facts

How Does Your Credit Card Usage Affect Your Credit Score?

Keep your credit score healthy!

Hi my name is Rachel with my Credit Repair USA. Here is something to keep in mind when trying to get or keep your credit score under control. Ideally you only want to spend about ten to twenty percent available credit limit. Using more than 40 percent of your credit limit will only impact your credit score greatly.The more you use, the more it affects your credit.

Frequent Questions, Answered:

Q: How do I find out how much of my credit I am using?

A: Call or lookup online using smart phone or computer to find out how much credit you have available. Every single card you have is separate. You do not add the cards up and their percentages.

Q: How reliable is 40%?

A: Credit Bureaus reach out or grab your score after every 28 days. They report back to the 3 credit bureaus with how much credit you are using and what your balance is.

Q: Do I just add up my credit cards and work out what 40% is and not spend more than that?

A: You do not add up the cards and figure out what 40% is. All cards are individual.

Q: What about loans such as for a car or mortgage?

A: Car and mortgage loans do not count in the 40%. The bank that holds your loan reports to the credit bureaus every 30 days to let them know you have made your payment as agreed. If you have not made the payment you will receive a ding on your credit report.

Q: Does everything count?

A: What do I mean by this question? Any loan from a bank does count! Your credit report is being reported to all bank institutions. Yes, If there is a loan from a respectable bank or respectable institution it will be reported and be counted on your credit report.

Q: What about a loan that I have cosigned on?

A: The reason why you are having to co sign is because the applicant has no credit. Everything you co sign will go on your credit.

Q: What if I have a credit card or line of credit I have never used?

A: You have established credit but you have not utilized It so it does not hurt you or help you. It is just going to report to the credit bureaus as zero (0).

Q: What if I just pay my credit cards off every month, does the amount on the cards (that is not overdue) also count?

A: If you pay off your credit card every month the credit bureau will report that you made your payment and you are satisfactory. However it is going to report back every 25 to 30 days where you are with your credit at that moment. Meaning how much credit you have used, your credit limit and your mortgage at that point. If you are at 60%, 70%, 80% or higher it will only hurt your credit score. Find the date that your credit card reports to the bureaus and whatever date that is try to get the balance down to 20%. That will make your credit score skyrocket!

Give us a call at MyCreditRepairUSA +1 (844) 296-6010.