If you owe multiple people a lot of money or even one person your income can get tied up into paying that money back. This can make it hard to pay your normal expenses and if it comes down to paying your light bill or your loan payment which one will you choose?
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When you have high balances on loans or your credit card is close to the credit limit, it will lower your score. This is considered an indication that you may be overextended or have too much debt to pay back which will lead to missed payments.
What Information is Considered
The Amount You Owe On All Accounts
The Type of Accounts You Owe On
If You Show Some Balance on Revolving Credit
Number of Accounts With Balances
Amount Owed on Installment Loan Compared to Original Loan Amount
Do your best to keep small balances on revolving credit (Credit Cards & Lines of Credit) and pay down your loans as soon as possible with extra payments or paying more than the monthly bill is set for.
Contact:
Clean Slate Credit LLC
Owner-Will Frazier
334-430-5296
www.cleanslatecredit4u.com
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