Available Credit and Your Credit Score
Posted on | May 19, 2010 | No Comments
The amount of credit you have uncommitted is a considerable ingredient in your FICO score. As you can find out from Home Loan Credit Score, as much as 30% of your score is based on how much outstanding debt you have, as opposed to how much credit you have available to use. Having below 50% of your available credit open can negatively affect your credit score. It’s wise to try and maintain 75% available credit, as this demonstrates low risk behavior and can bring up your credit score.
Another important thing to keep in mind is, after you pay off a debt, leave the account open, even if you have no intention of using it in the future. By closing the account you are decreasing your amount of available credit and in turn decreasing your credit score. If you already have closed accounts after repaying them , get in touch with the creditors and attempt to negotiate opening the accounts again. To be clear, this does not mean to get them give you a new account with he same creditor, as this is viewed much differently and will not help with the benefit to your length of credit history. Instead, try to enourage them to allow you to reopen the closed account with that account’s history intact.
By paying close attention to your credit report and guaranteeing that the important pieces of your credit are taken care of, you can keep your credit score at the top of the range, or even raise it considerably in just a few months. While consistently having a good payment history and ensuring you have your available credit at a maximum are imperative to keeping your score high, there are other credit related issues that affect your credit score as much or more. To find out more about credit score repair, Credit Score Professional and other items that relate to your FICO score, check out Home Loan Credit Score and learn what you need to know about maintaining good credit.
Tags: available credit > credit > credit history > credit report > credit score > creditors > debt > fico > fico score > good payment history > maintaining good credit > pay off a debt
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