So, you’ve got some loans and think you are pretty hot stuff. Well, if you try to max out those loans, you will find that the hot stuff just cooled dramatically and you now have a low score to prove it. The reason is that if you don’t control the loan balances, then you will cost yourself some serious points because you have to keep the loan balances in control. For revolving accounts don’t go over 45.91%. Keep it safe and stay below 45%. You have probably heard many “credit experts,” tell us to keep our balances below 50% and it sounds really good. But the credit bureaus have heard the experts also and to outsmart them, they dropped their ratio limit to 45.91% just to outguess them. Sneaky, but it is effective. Want to be on the insider scoop, then drop your credit balances that extra 5% and make some extra points on your credit score.

On installment accounts, getting your balances 20% below the original balance as quickly as possible will help to boost your credit scores as well. I know some people who get a car loan, house loan or personal loan and quickly pay off that first 20% to get the loan balance below 80% and see their credit scores jump up again. I can’t say how many points because it is always conditional on about 100 different pieces of information in your credit file that I have no way of knowing. But it will jump up, I assure you.

I can think of only 1 important reason to close a revolving account… ever! That is for the reason that it is a finance company and is costing you a lot of points just for having it on your credit report. So, close away. However for any other reason… well ok, lets say you have a gazillion other virginia credit card debt solutions open… they don’t even have to have balances on them, but too many is too many. We would close the newest ones only, so that we had no more than about 20 revolving accounts open. Remember to have no more than about 4 revolving accounts with balances or you will end up losing a lot of points again. When we have history on those open accounts, it is like gold in our financial pockets and worth ever penny to get us there.

These are called credit cards or personal lines of credit. They are very useful for purchasing without using cash or checks or other forms of easy to steal money. Having too many of these can be bad for your credit score and cause your accounts to be out of balance with the number of revolving accounts you might have. A good thing to remember is that you need to have a at least one bank revolving account with a national bank, not just a local bank or credit union. It will impact your credit score.

When you have high ratios on multiple loans it will affect the overall debt to credit limit ratios. What this means is that the credit bureaus not only checks the debt to credit limit ratio on each account you have but also on all accounts overall, jointly. They add up all the balances together and all the credit limits together and takes the ratio of these. If the ratio is high, it shows you are a high-risk consumer and down come your credit scores. It is important to keep all your ratios as low as possible to increase your credit scores.