Credit Cards Tips for You

Dear Creditnet: I know that my credit utilization ratio makes up a large part of my FICO credit score.  I’ve also read that it’s important to keep my ratio under 30%, or preferably at 10% or less.

My question is would it be better to keep my credit utilization ratio at 0% or 10%?  If I pay my balance off every week and my credit utilization is reported at 0%, is that hurting my FICO scores?

Answer: A 0% credit utilization ratio certainly isn’t hurting your FICO scores. Technically, it’s the best credit utilization ratio you can achieve, which means it should also translate to the best possible FICO credit scores.

However, even if you never carry balances on your credit cards, a 0% utilization ratio can be difficult to achieve.  Credit issuers all report balances at different times each month, which means keeping track of when your balances are reported and trying to pay them off in advance can become quite tricky for many cardholders.

If you have just one card and wish to pay it off each week in order to keep your available credit as high as possible, keep doing it.  Your FICO

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Ever wonder how your state stacks up against others in terms of its residents’ average credit score?  While you may think your neighbors have great credit scores, this map could tell you otherwise.

Check out our infographic below and see just how good your state’s residents are at managing their credit:

One of the changes implemented by the Dodd-Frank financial reform bill will take effect tomorrow, July 21^st: if you’re denied a credit card or asked to accept an above-average interest rate, you have a right to know how your credit score influenced the decision. This new protection applies not just to credit card issuers, but to utilities, insurance companies, landlords and anyone who falls under the designation of “creditor.” Now, if you’re turned down or if you are issued a card with a high interest rate, the issuer will have to detail exactly why you have these adverse terms.

In the words of the Federal Reserve, this new law “requires creditors to disclose credit scores and related information to consumers in risk-based pricing and adverse action notices under the Fair Credit Reporting Act (FCRA) if a credit score was used in setting the credit terms or taking adverse action.”

That needs a bit of parsing. If you get abnormal terms on a credit card (a higher interest rate, say), are denied for the card outright, or have to pay a higher insurance premium, then the issuer will have to tell you 1) your credit score and 2) any information they used in addition to your credit score. This is int

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We all know how important it is to have good credit, especially in tough economic times. When lenders arent lending like they use to it becomes even more imperative to have good credit. The better credit you have the more options you have as a borrower. This holds true when it comes to credit cards, too. The better credit score you can bring to the table, the better credit card offer you will be eligible for. Here are 5 things you can look forward to when you have good credit.

1. If you have good credit you are going to get approved for better offers. This includes card offers that have 0% introductory rates. Whether it is an introductory rate that is offered on purchase, balance transfers or both, theses are the kind of offers that will save you money. All the best offers out there are only available to those with the best credit scores. A lower interest rate for you means more money in your pocket.

2. The point of a reward credit card is to save you money. However, its not secret that best rewards cards are reserved for those with good credit. The better credit you have, the better rewards card you can get.

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Countless small business credit card offers are just waiting for the next business account to open. You may have even received these specialized small business offers in the mail. Building business credit can be very important for the future of your company. Just like a good personal credit history, a strong business credit history shows your creditworthiness and also gives credence to your business as a legitimate company.

When you have your own company, you may have to juggle business credit cards, business lines of credit, and small business loans to keep your company moving forward. Your credit behavior with these forms of borrowing for business can help you to build strong business credit if you play your cards right. One thing to remember when working to build corporate credit is the importance of separating your personal credit and spending from your business credit and spending. Treat your business as a separate entity to ensure you receive adequate protection for your business as well as opportunity to borrow higher amounts of money through your corporate line of credit.

Benefits of Building Business Credit A good business credit score typically allows your business to borrow more money and also allows you as the business owner to negotiate more favorable terms for your business loans.

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