Sentences with phrase «high credit utilization percentages»

Not exact matches

A high credit utilization ratio — that is, using a large percentage of the credit available to you — can cause your credit score to drop.

Getting rid of an account could raise your overall credit utilization ratio and make it look like you're using a high percentage of your total credit line.

Borrowing a high percentage of your credit line — or having a high credit utilization ratio — could negatively impact your credit score.

A high utilization percentage will impact your credit score negatively.

You can be pretty confident that your combined credit utilization, where a lower overall percentage leads to a higher score, will continue to benefit from the addition of those six new credit limits well into the future, as you have added to the credit limit portion of the balance / limit equation while keeping balances low.

However, with utilization on the higher side — say, more than 25 percent — the removal of the closed card's limit can cause those remaining balances to make up a larger proportion of your available credit, increase your utilization percentage, and lower your score.

We all know that rising revolving debt, as reflected in higher utilization percentage, can be bad news for your score — just as having no recently reported open revolving credit can also be a hindrance.

Since store cards are included in credit utilization (balance / limit percentage) calculations, along with credit cards, I'm guessing that the $ 9K balance is taking up a good portion of that card's credit limit and, depending on how you pay it over the 12 months, is likely to continue contributing to a higher combined utilization percentage than you'd otherwise be seeing.

These actions can hurt your score if they result in higher credit utilization (percentage of balance to credit limit); therefore, you're going to want to preserve your credit lines by keeping your credit card accounts open and using them frequently — while, at the same time, maintaining low balances.

If you're using a high percentage of your available credit limit, then you have a high utilization ratio.

Too - high utilization rate: Your utilization rate is the percentage of available of credit you use on your credit cards.

Yet, in the longer run — six months to a year — the result of having added new cards can be a higher score than would have otherwise been achieved, thanks to the lower credit utilization (individual and combined card balance / limit percentage) that often occurs when the amount of available credit increases.

Credit utilization affects your score both on the individual and combined account level, such that even if your combined utilization percentage is low, having any highly utilized cards within that combination can keep your score from being as high as it can be.

Specifically, this is your combined credit utilization percentage (total card balances / credit limits) that, once it gets higher than 25 percent or so, could be impacted when any card is closed.

To give you an example of how a higher balance on one card one month can raise the utilization percentage from the prior month — and hurt the score — let's say a card has a credit limit of $ 1,000 and the monthly charges typically add up to $ 100 before being paid off the following month.

People who carry credit card debt have higher credit utilization ratios — the percentage of their credit limits they're using.

Also, those who have a high credit utilization (in other words, those who are at or near their credit limit) will have lower scores than those who are only using a small percentage of their available credit.

High utilization of any one card or line of credit would be a lesser factor, where one could further optimize their credit score and perceived credit worthiness by lowering the utilization on a single card well below a percentage threshold.

If your credit utilization ratio, or the percentage of your credit limit you use, is too high, your score may go down.

A high credit card balance can result in a higher credit utilization ratio, which is the percentage of outstanding debt in comparison to your available credit line.

Plus, if you've accrued large amounts of debt over time or you've come close to maxing out your credit cards, you may have a high credit utilization ratio, which is the percentage of your credit limit you actually use.

It's okay to use your credit cards, just be careful about using a large percentage of your available credit — high utilization rates can have a major impact on your FICO ® Scores.

This is mainly because you will suddenly be using a higher percentage of your available credit, and that is a factor in your credit score (called credit utilization).

That's because the more you charged on a charge card, the higher the «high credit» amount used in figuring the credit utilization percentage.