August 8, 2008

Credit Card Utilization

Filed under: Credit Cards,Credit Scores

My husband and I would like to purchase a new home within the next month.  My credit scores are in the low 600s. 

In order to bring my scores up, I was wondering if it would be enough to reduce my credit card balances to 30% of my credit limits. 

With the exception of one card with a credit line of $3,500, my other cards have credit lines of $500-1,000. 

Thanks for your help!

Susan

————

Hi Susan,

Yes, reducing your credit card balances will almost always improve your credit score and the lower the better.  Be sure to spread the balances out over all of the cards equally so that you don’t have a $500 credit limit with a balance higher than $150.

Read: Credit Score a Function of Amounts Owed

Thanks for the questions and hope this helps.

Paul

Comments are closed.

Back to Broken Credit Blog