New Contributor
Posts: 63
Registered: ‎08-07-2012
Re: Having Zero Debt Lowers Your Score by 7 points.

if you have a low credit balance every month then thats good if you just paid off a large amount when you usually dont then thats bad if you use more than 15% of your credit availability every month that creates a high credit to debt ratio  which is a major factor that lenders look at even if you paid down your credit cards this month there is no consistency thats more of a red flag to lenders showing that you just want credit not that you consistently pay down your credit the whole thing is to demonstrate the same characteristics of how you balance your finances over time with different factors of life coming against the set amount you agreed upon in the contract. i know people cant stand to know hear understand or want to see that the reality of things is: once you make an agreement with numbers on paper where you sign your  name in the fine black print yodu are agreeing to anything happening your still gonna come through and pay what you agreed on regardless which in term can never be a bad thing and never work against you in the long run the bigger picture because thats what lenders/banks/mortgage companies/debt/utilities/credit cards/school finances are for to keep track of everything you do how much you make/pay/owe/etc.The proof is in what you carry overall in the history of your credit and short credit under 6months is not established enough for them to read and predict well if wanting a higher than 1G loan and having secured 200 etc. amount on your less than established credit but adding and subtracting must be gradual and in a pace that goes well with your reporting finances so that you prove your not able to deduct from your usual ways of living and can still tack on credit to your extra shopping finances you make each month so you show you will stop and do what you have to do gradually to get where you want to go in the long run duh thats safe and thats solid and that makes sooo much sense i agree!!!!Smiley Wink