I came across some great information on raising your credit score as it relates to credit cards and credit card balances.  Did you know that credit cards can help your credit score but can also hurt in different circumstances.  I was speaking with a lady today who told me she had perfect credit but her scores were very low.  I asked her to bring in her credit report so I could take a look.  Well it was pretty easy to spot her problem.  She was over the limit on almost all of her credit cards.  Even though she was making all payments on time, her score was damaged because of the amount of credit used on her accounts.  I decided to dig a little deeper to find out just how much this really mattered and I was surprised with the answer.  In some cases being over the limit on your credit cards is just as bad as not paying them.  Here is what I found out. You receive the most points for your score if your balance is less than 10% of your limit.  That means if you have a $5000 credit limit, you need to keep the balance owed to less than $500.00.  Your score is improved by having credit cards with balances all the way up to the point where you reach about 50% of your limit. Simply put, the less you owe, the higher your score.  As soon as you start carrying a balance higher that 50% of your credit limit you actually start lowering your credit score even if you pay on time.  Doesn't seem fair does it?  I hope this information helps you reach you credit score goals in the future.  As always, if you have any specific questions, please email me and I will answer them as quickly as possible.  I also want to thank everyone for reading my blogs and recommending them to friends and family.  

Have a great New Year!

Lee Haun