We did not know this
February 11, 2009 | alternatives, industry, personal finance | Comments (0)Even if you never miss a payment on your credit card, you’re credit rating could drop as much as 100 points if your balance is too high. From the story:
Using more than 30% of your available credit could knock as much as 100 points off your credit score, and that can make a big difference when it comes time to take out a loan. Advice: Get your credit card balances below that 30% threshold. One way to tackle your debt is to pay more than your minimum monthly payment. Most credit cards require monthly payments equaling 4% of your balance. At that rate, it would take 12 years and five months to pay off $5,000 on a card charging 18% interest. It would also cost $7,916 in total payments. Double your monthly payment to 8% and it takes only $6,140 and five years and eight months to pay it off.
Interesting.
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