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Minime89

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How reducing your credit card balance helps your credit score
I reduced my credit card balance two months ago by 20k with no change in my score. However one hard credit check for new car reduced it instantly by 2 points. Why is that?

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Top Contributor
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Is your utilization less that 30%?  If not, it won't affect your score until it drops below that percentage.  Best case scenario for driving up your credit scores is to keep a balance of 1-3% on the cards at all times.

Top Contributor
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DON'T keep a balance on the cards because you'll be paying interest.  Get the accounts paid in full and use them periodically, keeping the usage at or below 20%.

I have a regular utility payment charged to my credit card every month and pay that off.  Good for the credit score.

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