Getting and keeping a good credit score is important in renting an apartment, buying a home, and most other finance-based ventures. CNN Money offers their best tips on how to maintain a FICO score, including the 20-percent rule.
Photo by Andres Rueda.
The article explains that how much you owe versus how much credit has been extended to you is the second most important factor in determining your score. By way of example, the author writes that if you've charged $5,000 on credit cards and have $50,000 in credit, your rate is 10 percent, which they say is "ideal"—though you can go up as far as 20 percent and still keep a good score. Once you consistently go over 20 percent, you begin to ding your credit score.
If you're lucky, you hardly ever carry over a balance on your credit card to begin with, but in case you've accrued a bit of debt, this is information worth knowing. Check out the link for the other credit tips, then watch our video covering ten credit score myths dispelled.
Win at the Credit Scoring Game [CNN Money]