TOO HIGH
We have all seen this message countless times on credit reports…PROPORTION OF BALANCES TO CREDIT LIMITS IS TOO HIGH ON REVOLVING ACCOUNTS.
But what does “too high” mean?
“Too high” means a lot of different things to people but here’s the scoop as it relates to credit scoring…
For an optimal credit score, revolving balances should be below 30% of the credit limit for each account. As soon as even one account has a balance of over 30% of the limit, then the damage to the score begins.
Once the balance reaches 50% the score is yet again wounded. Then again at 70% and the real carnage to the score occurs whenever the balance is at 90% or more.
Revolving accounts with “proportions too high” can and will hurt any person’s credit score significantly since account balances account for 30% of a credit score and mix of credit is another 10%.
This is the number one reason people with perfect credit can score in the low 600’s. But armed with this knowledge and tomorrows Insights factoids you can help yourself and many others avoid the pitfall of being “too high.”
To be continued…
Sent to me by:
Gabriele Huntsinger
Senior Mortgage Consultant
CTX Mortgage Company LLC
# posted by
Leslie Reisinger @ 12:22 PM
Pending home sales are up, indicating a stabilization is taking place in the housing market, according to the National Association of Realtors® (NAR).
The index is a leading indicator for the housing sector. Based on pending sales of existing homes, it predicts the level of closed home sales in the following two months. This month’s numbers, based on contracts signed in August, rose 4.3 percent to a level of 110.1 from a reading of 105.6 last month.
David Lareah, NAR’s chief economist, said the rise in the index is a hopeful sign. “The Pending Home Sales Index shows home sales should be fairly stable over the next two months”.
# posted by
Leslie Reisinger @ 8:34 PM
