Credit Made EZ
You must understand it fully before you use it. Your credit report is
divided into many sections. Here is a sample report for you to view.
For review it’s okay but I must insist that you obtain a copy of you/ or
you and your spouse’s credit report.
The report has detailed information about all of your accounts (open,
closed and derogatory). Also all of your public information (divorce,
foreclosure, bankruptcy, and judgments). Most importantly it must
have your credit or Fico score.
The fico score is a complex algorithm that calculates your
creditworthiness to a lending institution. This number is as
important as your social security number. Did you read that it’s
Your credit score is weighed heavily on these factors.
Length of time the account has been open.
Amount of available credit vs. credit limit.
Type of credit Major or Minor
Length of time your debt has been carried.
The longer an account has been open and kept paid current the
better for you as a consumer or business. I am not saying to spend
on your credit card and then pay the minimum payment for the next
Your credit balance is one of the largest factors to your credit score. If
you had a credit card with a spending limit or “high balance or limit” of
$1000.00 and you had $500.00 worth of charges on it, your credit
card would be at the 50% capacity.
Simply stated do not spend over 50% of your “high credit limit” for the
least impact to your credit score. Preferably do not go over the 30%
threshold for maximum benefits to your credit score.
Never carry debt on a credit card for more than 30 calendar days.
When you carry debt on a credit card it negatively impacts your
score. The only debts you should carry over month to month are
mortgage and automobile financing.