Weekly Finance Vlog/BlogFollow
5 years ago, the only thing I knew about getting a good credit score was to make payments on time....apparently there’s a lot more to it than that.
Why they don’t teach you this in school, we may never know. But, because public school taught me absolutely nothing about money, it’s allowed me to create an entire weekly segment about all the mistakes I‘ve been fortunate to learn from... I guess I should be thanking them.
And that leads me to this week's tip:
Credit bureaus don’t look at the balance of your accounts, they look at the ratio of your balance to your credit limit.
You want to keep this amount below 30%.
The easiest way to lower this percentage is to raise that ceiling. By raising that credit limit, you’re lowering your spent-to-spendable ratio, and therefore raising your credit score.
Stay tuned for more 20 second tips throughout 2020, see you next time.