There are few facts that are worth mentioning which will help persons to maintain higher credit scores.
1. One fact is that many people open accounts with zero or low balances to help raise a credit score.
2. If a person has a credit card with a $1000 limit, and keeps the balance below $500 (49% or less of the limit) this will raise a score. Should the balance on the same credit card be at $501 or higher it will adversly effect the credit score.
3. 29 days late on an account has no effect.
4. 30 days or more late on an account has a negative effect.
5. If you decide to apply for a credit card and know that you are going to make a large purchase on it right away make sure that you don’t get a credit line of $2000 and spend $2000. It would be more advantageous for you to apply for a $5000 credit limit and make the $2000 purchase. The former will have an adverse effect, the latter a positive effect.
6. Adverse information, by law, must be removed from the credit history when it is 7 years old.
7. A Bankruptcy Chapter 7, 11, or 13 may remain part of the record for 10 years.
8. Open accounts with zero balances are good for credit scores
9. Having a zero balance on open account is better than closing an account.
10. If you have 3 accounts, one with a $5,000 limit, and two with a $3000 limit, and you owe $4,500 on the $5,000 card and owe $2,400 on each of the $3,000 limit cards. Let’s say you have $2,200 available to pay towards them. To make the most of the credit scoring I would recommend paying $950 on each of the $3000 limit cards and pay $300 on the $5,000 card. Reason being you will bring (2) cards to under 50% of their respective limits and do your score the most benefit. (Most people would probably pay more on the higher limit card and not help their score at all).