How Do Some People Get Great Credit?
January 26th 2012 -
You may think that great credit scores are only for the very wealthy. Having a good income may help some people avoid debt and pay off debt balances. However, some people with high incomes have poor credit, while some people with very modest incomes manage their credit quite well. How can you manage your credit better?
Great Credit Scores
Having a huge amount of credit is not the secret to having great credit. It goes without saying that you must always make your payments on time. But even that will not be enough. If you want great credit, you must also keep your balances fairly low.
If you have a credit card with a $5,000 maximum limit, and you have charged $4,900, and only make minimum payments, your credit score will suffer. On the other hand, if you have a credit card with a $2,000 limit, and you only carry a $250 balance, you will be seen as much less risky. It is the percentage of open credit you have, and not the balance.
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