Author Topic: mis-leading improving credit score advice  (Read 201 times)

bluebelle

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mis-leading improving credit score advice
« on: February 06, 2019, 02:31:41 PM »
this is a Canadian article, although they reference FICO which I thought was US based.

It's an interesting article, but one thing that stands out as WRONG is that it is advocating having a 30% utlization (as in carry a balance on your CC) to improve your score....I thought that any low utilization was a good thing, ie owing $1000 on a 20,000 limit is a 'better score' than owing $1000 on a $1500 limit.....To mean, the article reads like they've advocating carrying a balance and paying interest.  I'm not worrying about it, since we use a CC for almost all purchases and there's a 21 grace period, we're always 3/4 of the way through next month's charges before I pay last months bill, so there's always a balance (with 0 interest paid).....but I hate articles that encourge folks to carry a balance and get rammed with unnecssary interest charges....it's like a bank paid him to write the article.

https://www.moneysense.ca/save/credit-score-obsession/