Credit Repair Houston Specialist Vanessa Perry explains the importance of credit utilization and what it takes to have Impeccable Credit in the latest episode of Ask Impeccable!
Credit Utilization Myths
People will often say to keep your credit cards at a 20 percent utilization. Which simply means to have 20 percent charged on your cards at all times. However, this does not benefit credit as much as accounts being paid to a zero balance. Many loan officers advise to keep a balance on credit cards. On the other hand, loan officers are not trained on how credit works as a whole. They are simply trying to paint a picture to an underwriter that you are responsible and worthy of paying a loan back to the bank. The fine details can make a huge difference on your credit score.
Facts About Credit Utilization
People with 800 credit scores do not have their cards charged up with a 20 percent utilization balance. For example, those who have 800 credit scores have all their cards paid off. Cards are to be used when needed. Credit cards and installment accounts work differently. Installment accounts are worth less points on your credit. Above all credit cards are considered to be revolving accounts. Revolving accounts are worth more points. Therefore, it is best to pay these revolving accounts off, as soon as possible. Credit cards report to the credit bureaus on the same day each month. Credit is established by being responsible with credit allotted to you. With proper education, the process of establishing and maintaining Impeccable Credit is simple. Many times not knowing the simple things can make you feel like you are spinning your wheels.
Credit Repair Houston
For more information on how to achieve Impeccable Credit make sure to do some research on credit repair companies and consider Impeccable Credit Services. Impeccable Credit Services has been in the credit industry for 16+ years. Our goal is to get all of our clients to Impeccable Credit Scores. If you have any questions regarding your credit feel free to call or check out our website as an educational resource, 713-378-1500, www.ImpeccableCreditServices.Com.