http://www.debtgotoguy.com/credit-help/how-credit-works/ Sat, 23 Jul 2011 01:48:03 +0000 hourly 1 http://wordpress.org/?v=3.3.1 http://www.debtgotoguy.com/credit-help/how-credit-works/#comment-1805 Jesse Niesen Thu, 23 Jun 2011 21:07:48 +0000 http://debtgotoguy.com/?p=85#comment-1805 Great question, A! At the time your cards were over the limit and listed as such on your credit report it was hurting your credit. Once you pay them down below half the limit the negative affect goes away within 30 days when your account data is updated with the credit reporting agencies. So if your balances are now at a zero, then being over the limit in the past should not have much of an affect on your credit score or worthiness any more. It may show up on your credit report as a high balance above the current limit, a minor negative. To remedy this, you could request a higher limit, however, you run a risk requesting a limit increase because it could trigger an "account review" and may result in having your limit actually lowered or the account closed if they see any red flags reviewing your account or credit report. So what you may gain may not be worth the risk. Also, if you are looking to improve your credit score, then having your cards at a zero balance may also harm you in the eyes of the creditors. Remember that credit card companies label customers who pay off their credit cards in full every month as "deadbeats" because you are using their money for free. They're in the business of collecting interest, so paying cards to zero each month and avoiding interest is smart for you financially, but makes you look like an NON-ideal customer to creditors. To most rapidly improve your credit score and position yourself as an "IDEAL customer" to creditors, consider carrying balance in the "sweet spot" of 20-25% of your limit on three accounts for six months. The lower the interest, the lower the cost to you, but to build credit this may be necessary. Hope this helps you and please let me know if you have further questions : ) Great question, A! At the time your cards were over the limit and listed as such on your credit report it was hurting your credit. Once you pay them down below half the limit the negative affect goes away within 30 days when your account data is updated with the credit reporting agencies. So if your balances are now at a zero, then being over the limit in the past should not have much of an affect on your credit score or worthiness any more. It may show up on your credit report as a high balance above the current limit, a minor negative. To remedy this, you could request a higher limit, however, you run a risk requesting a limit increase because it could trigger an “account review” and may result in having your limit actually lowered or the account closed if they see any red flags reviewing your account or credit report. So what you may gain may not be worth the risk. Also, if you are looking to improve your credit score, then having your cards at a zero balance may also harm you in the eyes of the creditors. Remember that credit card companies label customers who pay off their credit cards in full every month as “deadbeats” because you are using their money for free. They’re in the business of collecting interest, so paying cards to zero each month and avoiding interest is smart for you financially, but makes you look like an NON-ideal customer to creditors. To most rapidly improve your credit score and position yourself as an “IDEAL customer” to creditors, consider carrying balance in the “sweet spot” of 20-25% of your limit on three accounts for six months. The lower the interest, the lower the cost to you, but to build credit this may be necessary. Hope this helps you and please let me know if you have further questions : )

]]> http://www.debtgotoguy.com/credit-help/how-credit-works/#comment-1804 A Wed, 22 Jun 2011 15:11:20 +0000 http://debtgotoguy.com/?p=85#comment-1804 I have a question. What if you had a couple cards that you went over the balance but they are paid in full now. Zero Balance. Can that still hurt your credit? I have a question. What if you had a couple cards that you went over the balance but they are paid in full now. Zero Balance. Can that still hurt your credit?

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