The #1 Credit Card Myth That Just Will Not Die – Why You Shouldn’t Fall For It!

Hey everyone, Noelle Randall here! Today, we’re diving deep into the world of credit scores and tackling a myth that’s been holding people back for years. Buckle up, because this might surprise you!

The Dream: A Perfect Credit Score

We all know a good credit score unlocks a treasure trove of benefits. Lower interest rates, easier loan approvals, and even bragging rights (okay, maybe that last one’s just me). But the path to credit score nirvana can be shrouded in mystery.

The Myth: Never Carry a Balance

This is the big one! Many believe you absolutely cannot carry a credit card balance to have a good credit score. Dave Ramsey and Susie Orman might tell you to pay it off every month, but there’s a crucial detail they’re missing.

The Truth: Utilization is Key

Your payment history is king, but credit utilization (the amount of credit you’re using compared to your limit) is a close second. Here’s the secret: you actually need a balance (within reason) to establish a payment history and show responsible credit card use.

The Magic Formula: Utilization Under 30%

The sweet spot for utilization is below 30%. Let’s say you have a credit card with a $1,000 limit. To keep your score happy, aim to keep your balance under $300 and make regular payments, even if it’s just a portion. Paying the minimum might take forever, but it won’t do wonders for your score.

The Power of Strategic Balance

Here’s where things get interesting. I used to pay off my cards in full, hovering around a decent 720-730 score. Then, I made a strategic move. I had a card with a $28,000 limit and charged $8,000. Over eight months, I made consistent $1,000 payments. My score? It skyrocketed past 800! Why? High limit, utilization under 30%, and a consistent payment history – the holy trinity of credit score magic.

Don’t Fear the Balance Transfer

Those pesky interest charges are a valid concern. But listen up, high credit score holders! You’ll be bombarded with 0% balance transfer offers. Take advantage of these to keep your interest low while strategically utilizing your credit.

Fixing a Bad Credit Score? We Got You!

Even with a bad credit score, there’s hope! There are ways to increase it, like adding authorized users to your cards or seeking debt consolidation. My friends at Creative Credit Solutions are wizards at this. They helped me go from under 600 to over 700 in just a few months!

The High-Limit Secret

Here’s another shocker: for truly exceptional scores (above 800), you often need at least one card with a high limit (think $10,000 or more). Those low-limit cards might not cut it. But remember, high limits come with responsibility. Use the card strategically, maintaining that utilization sweet spot.

The Double-Edged Sword of High Limits

Unused high-limit cards can be a problem too. Some issuers might even close your account, hurting your score in the process. So, use those cards, maintain a balance (under 30%), and make regular payments.

Remember:

• Payment history is king, but utilization is a powerful queen.
• Aim for under 30% credit utilization.
• Strategic balance use can boost your score.
• High-limit cards can be your credit score allies.
• Use your high-limit cards or risk losing them!

Free Credit Score Help!

I want you to be successful! Creative Credit Solutions offers free consultations to help you create a personalized credit score game plan. Don’t wait – get the tools and knowledge you need to reach your credit score goals!

This is Noelle Randall  wishing you much success!