Did You Know Series Presents: Balances on Revolving Debt

Did you know…One of the biggest factors in determining a credit score is balances on revolving debt?  Optimally the bureaus want to see no more than 3 revolving debts with balances and those balances being below 30% of the high credit.  They also want to see several other open revolving accounts with no balances.  Having said that, at least one of the revolving debts should have a small balance.  The bureau’s models like to see that the cards are being utilized, so carrying at least one small revolving debt is a good idea.  Paying off all your credit cards every month and never leaving a balance on any of them can actually hurt your score.  If there are no revolving balances on a credit report, sometimes even putting $10 on a card can bump a score 10-20 points.