Carlos's Credit Savvy Tip #2: Pay your balances down

Pay your balances down!

30% of your credit score is made up by your debt ratio: the amount of debt you have as a percentage of what your credit limits are. If you are in the market for a large purchase, you should try to pay your balances down to as close to zero as possible. We understand that this is not always possible. With this in mind, we would like to let you know that the most noticeable benefit on your credit score takes place when your debt ratio is at 70%, 50%, 30%, 10%, or, naturally, 0%.

When you do pay down your balances, make sure they are spread evenly. For example, if you have one card with a credit line of $10000 and one with a credit line of $1000 and you are carrying $5500 worth of debt you should have $5000 on the $10000 card and $500 on the $1000 card