Similar to the belief that no credit equals good credit, having lower limits can actually be extremely harmful to your credit score. To understand how this works you need to understand utilization rates, or what we call the 30% rule. Credit bureaus look to see that you are maintaining less than 30% of your credit limit at all times. If you go over the 30% marker, you are considered to be living above your means and this will be reflected in your credit score.
The problem with lower limit credit cards is that it is far too easy to go over the 30% rule. If you only have a $250 credit limit, you can never have a balance of over $75 without creating a negative reaction to your credit score. In addition, many credit card companies report your credit limit lower erroneously. Meaning you may be right under $75 each month, but your credit limit is being reported at $200 instead, putting you over the 30% limit.
In some cases, when you’re rebuilding your credit you may have to work with these lower balances. This will take careful planning to avoid any issues with errors. However, if you have higher balances, you do not want to ask for your rates to be lowered. You can never have “too much available credit.”
The best way to make sure you don’t go over the 30% rule is to use auto payments. You’ll want to schedule a monthly payment for a bill such as a gym membership or other monthly payment you need to make to be taken directly from your credit card. Then, from your bank account, schedule another auto payment to pay the credit card for the same amount.
This may sound like taking a few extra steps, but it keeps your accounts active and you can control exactly what spending is happening on your cards so you don’t go over the 30% limit.
To learn all all the facts on your credit score, get the book that will walk you through the 7 steps to a 720 credit score.
Author: Philip Tirone
Marriage and Credit: Join Lives, not Accounts!
Most people approach marriage and credit with a one-for-all, all-for-one attitude. They open joint credit cards, apply for car loans as a couple, and stop building separate credit histories. After all, they have joined their lives together; why not marry their credit histories?
Though the sentiment is appealing, keeping some credit accounts separate has big advantages. Holding credit jointly puts a couple at even greater risk during times of financial crisis. Here are two common credit pitfalls of marriage.
Pitfall #1: Joint Credit Cards and Automobile Loans
Let’s imagine what would happen in a typical household by considering Jack and Jill, a married couple with joint credit cards and joint automobile loans.
Jack lost his job, so the couple is trying to make ends meet. After a couple of months, they start realizing that they cannot afford all of their bills. So they stop making payments on several credit cards and on one of the two car loans. The credit card bills are sent to collections and the car is repossessed.
And both Jack and Jills’ credit scores are in the trash.
Now let’s see how the same situation would play out with Peter and Paula, a married couple with separate credit cards and automobile loans.
When Peter loses his job, the couple creates a strategic plan about their forthcoming financial problems.
Peter and Paula know they can only afford to pay all their bills for three months; the money will run out after that. Peter searches high and low for a job, but is unsuccessful. After three months have passed, the couple decides to stop paying credit cards and car loans in Peter’s name. They stay current only on bills in Paula’s name.
Of course, Peter’s credit score suffers. But Paula’s remains pristine. This means that Paula is able to apply for loans in her name, while Peter learns how to rebuild credit.
Opening all loans jointly is among the biggest credit-scoring mistakes a married person can make. Let’s take a look at another one.
Pitfall #2: Holding All Credit in One Spouse’s Name
Opening all credit cards and loans in one spouse’s name is another big no-no for married couples.
This usually happens when one spouse works a nine-to-five job and the other stays home with the kids. The spouse with the paycheck opens all credit in his or her name.
But what happens if something happens to the working spouse? A bankruptcy, death, loss of income, or divorce would make the other spouse vulnerable. Because no credit is the same as bad credit, the stay-at-home spouse would have no ability to secure a loan.
There’s another problem with this strategy. Let’s switch this scenario up a bit and imagine that both spouses work. The wife has a part-time job with a small salary, so all of the credit is in the husband’s name. The couple decides to buy a home. To qualify for a loan, they need both spouses’ income.
The couple now has a big problem: The wife has no credit history, so her score is low. Putting her name on the home loan would endanger the loan. And the husband cannot qualify for the loan on his own—he needs his wife’s income for that extra boost.
Most likely, the couple would not qualify for the loan. At a minimum, the couple would pay a higher interest rate.
This pitfall can be avoided if both spouses build their own credit scores.
Build Credit: The Truth About Living Debt Free
For a lot of people, living with credit card debt is simply a way of life. We have all heard of the credit crunch where banks lent more to people than they could afford to pay back. When people fell behind on their repayments, the banks were in trouble and drastically cut back on the amount of money they were lending. This then led to a collapse in the housing market as a glut of foreclosures suddenly came up for sale. A lot of people, during this depression, decided that credit was actually a bad thing and they started to live a debt free lifestyle. While this is a great idea in principle, it is not a good idea to close your credit card accounts and attempt to live life on a cash only basis.
The problem is that your credit score affects many areas of your life. For example, car insurance companies now use credit scoring as a way to determine how responsible you are behind the wheel of a car. More and more companies are now using credit scoring to decide how responsible you will be as an employee. Also, if you ever need cash in an emergency, it is essential to have a good credit score to ensure you get the money you need quickly and at the best rate.
What most people do not understand is that not having credit is just as bad as having bad credit. We no longer live in a society where you can be good friends with your bank manager and he, knowing who you are and how you live, can decide whether to lend you the money you need. Most bank managers know little more than sales department managers.
At US Bank, for example, the local branch no longer has control over whether a check that overdrafts your account will be paid or bounced. If you call the branch and ask them to pay it, they will tell you that they have no control over it. They will tell you, however, that you should apply for overdraft protection so that it does not happen again, and they will happily help you fill out an application. Of course, whether or not they grant you overdraft protection depends on your credit score.
The problem with not having credit is that the credit bureaus will no longer be able to assess your credit worthiness. Rather than assume you are a good person to lend to and risk being wrong, they will err on the side of caution and assign you a poor credit score. This could lead to higher rates on your car insurance, mortgage or even stop you from getting a job or promotion.
Unfortunately, it is not a good idea to simply put the credit cards into a drawer and never use them either. A lot of companies will declare unused cards as inactive and therefore they will not count towards building your credit score. However, there is a solution that will not cost you extra money in interest and will still build your credit score.
The solution is to have between three and five credit cards and set them up to automatically pay one monthly bill each. For example, your cable bill could be paid out of one card, your car insurance could be paid out of another and your gym membership could be paid out of a third card. In order to avoid interest charges, you could then set up an automatic payment to these cards from your bank.
In essence, using this method, your money leaves your bank and arrives at the place it needs to get to; it just passes through your credit card accounts on the way. This allows you to essentially live debt free, but give you the benefits of a healthy credit score so you have access to the cash you need in case of an emergency.
Getting Unstuck
Over the last months we’ve asked you to share your stories of credit and personal finance.
Well, I now have to confess that I’m a little embarrassed…
You see, I am about to share shocking stories I have never shared with anyone before. After all, you’ve shared your stories with me, so now it’s my turn…
www.NeverBeStuck.com
The purpose of sharing stories is to learn from another person’s life choices. I’ve had bruises up and down my arms, and I’ve been practically illiterate. I’ve spent $50,000 more than I earned. I’ve been in financial wreckage…
But I got unstuck.
And now I’m going to tell you the exact process I used to get unstuck financially each and every time I found myself in a jam. Because you so generously shared your personal story with me, I’ve created a series of FREE videos that teach you the exact formula for getting instant results, instant income, and instant change.
Here we go…
Philip Tirone
P.S. Once, I actually led a secret life. Watch the video now.
The Best Places to Buy Used
Having extra money to put towards bills or savings is always a great feeling. It’s even better when you’re able to do it without changing much in the way of your purchasing routines. This is where buying used comes in. Let’s face it; an item with a slight amount of wear and tear at significant price reductions can often be worth losing that “new” feeling. Not only will you save some extra cash, but you’ll also be starting new environment-friendly practices.
So, what types of things are best purchased second-hand? Honestly, you can find just about anything available used with a little digging. Some of the more common items include:
Clothing
Jewelry & Accessories
Baby Items
Children’s Toys & Furniture
Books
Furniture
Exercise Equipment
Jewelry & Accessories
Baby Items
Children’s Toys & Furniture
Books
Furniture
Exercise Equipment
Games
Refurbished Computers & Parts
Music
Tools
Automobiles
Homeware Items
Appliances
Refurbished Computers & Parts
Music
Tools
Automobiles
Homeware Items
Appliances
The biggest issue isn’t typically what to buy, but rather where to buy it from and how to tell if it’s a good deal. This is where a little research comes into play. Here are a few tips to keep in mind:If it’s a major purchase, such as furniture, scan through local ads or furniture store websites to see what the going value of similar items you desire to purchase are before buying something used.For smaller items, set a budget of what you want to spend. If you know you want some new kitchen appliances, determine ahead of time roughly how much you want to spend on each item. Try to find things under budget to allow some wiggle room in case something is higher than you expected.
Today, there are a myriad of options for buying used products from online auction sites to second-hand stores. Here we take a look at your best options for buying used online:
ONLINE
eBay
eBay is an excellent option to check and compare the going rates of certain items. Whatever you are looking for, you’re pretty much guaranteed to find it here. It’s always a good idea to watch for shipping charges and to check the prices of similar items to make sure you’re getting the best deal. The best benefit of eBay, however, is getting into the habit of selling your unwanted items first and using that money to make your new purchases. It’s an endless cycle of savings!
Craigslist
If you’re looking for something local, Craigslist should be the first place you look. There are a numerous amount of computer and phone apps to help keeping up to date with Craigslist easier. Before using this service, there are a few tips you should consider:
Always make sure to see the product before agreeing to purchase it.
If it’s an electronic product take all steps necessary to make sure it works.
BUYING LOCAL
Thrift Stores
If you’re willing to browse through a mass of items, thrift stores can offer some excellent finds. When it comes to quality, always make sure to do a thorough inspection of what you plan to purchase. Check for holes, tears, missing buttons and stains on clothing. For other items, check for cracks or other signs of hard use.
Second Hand Stores
The amount of second hand stores has increased as people are looking for more economically viable options to purchase the things they need. You can find used stores dedicated to a variety of items such as clothing, baby items, games, books, and sports equipment. The quality of the items you purchase is typically higher than a thrift store as the store goes over all incoming items before accepting them. It is still a good idea to be able to check the working functionality of electronic or bigger purchases. Bonus Tip: Some stores have some wiggle room when it comes to prices. If something is just a little bit out of your budget, try asking for a discount.
Flea Markets, Swap Meets & Garage Sales
Want a fun way to spend an afternoon and get some great deals? Try a local flea market, swap meet or garage sale. You never know what you’ll find at these places, and it’s important to know what you want or to have a set budget before going. Impulse purchases are high at these types of venues and your budget restrictions will help you avoid making unnecessary purchases.
OTHER OPTIONS
Trade With Friends
Sometimes you don’t need to actually buy anything to get the benefit of finding used products. In some cases you can get a great find by exchanging your unwanted items for someone else’s treasure. A fun way to do this is to host a barter party. Pick a category such as clothing, tools, movies, books or even video games and have everyone bring items they’re willing to part with. At the party everyone makes trades with each other. It’s a fun way to have an inexpensive evening of entertainment and get some new things as well.
Hand-Me-Downs
When you need something new, the best place to start looking is by asking your friends and family if they have anything they are willing to sell you. You’ll be helping them get rid of something they don’t want and you’ll be saving some extra cash by getting the items used.
Today, there are a myriad of options for buying used products from online auction sites to second-hand stores. Here we take a look at your best options for buying used online:
ONLINE
eBay
eBay is an excellent option to check and compare the going rates of certain items. Whatever you are looking for, you’re pretty much guaranteed to find it here. It’s always a good idea to watch for shipping charges and to check the prices of similar items to make sure you’re getting the best deal. The best benefit of eBay, however, is getting into the habit of selling your unwanted items first and using that money to make your new purchases. It’s an endless cycle of savings!
Craigslist
If you’re looking for something local, Craigslist should be the first place you look. There are a numerous amount of computer and phone apps to help keeping up to date with Craigslist easier. Before using this service, there are a few tips you should consider:
Always make sure to see the product before agreeing to purchase it.
If it’s an electronic product take all steps necessary to make sure it works.
BUYING LOCAL
Thrift Stores
If you’re willing to browse through a mass of items, thrift stores can offer some excellent finds. When it comes to quality, always make sure to do a thorough inspection of what you plan to purchase. Check for holes, tears, missing buttons and stains on clothing. For other items, check for cracks or other signs of hard use.
Second Hand Stores
The amount of second hand stores has increased as people are looking for more economically viable options to purchase the things they need. You can find used stores dedicated to a variety of items such as clothing, baby items, games, books, and sports equipment. The quality of the items you purchase is typically higher than a thrift store as the store goes over all incoming items before accepting them. It is still a good idea to be able to check the working functionality of electronic or bigger purchases. Bonus Tip: Some stores have some wiggle room when it comes to prices. If something is just a little bit out of your budget, try asking for a discount.
Flea Markets, Swap Meets & Garage Sales
Want a fun way to spend an afternoon and get some great deals? Try a local flea market, swap meet or garage sale. You never know what you’ll find at these places, and it’s important to know what you want or to have a set budget before going. Impulse purchases are high at these types of venues and your budget restrictions will help you avoid making unnecessary purchases.
OTHER OPTIONS
Trade With Friends
Sometimes you don’t need to actually buy anything to get the benefit of finding used products. In some cases you can get a great find by exchanging your unwanted items for someone else’s treasure. A fun way to do this is to host a barter party. Pick a category such as clothing, tools, movies, books or even video games and have everyone bring items they’re willing to part with. At the party everyone makes trades with each other. It’s a fun way to have an inexpensive evening of entertainment and get some new things as well.
Hand-Me-Downs
When you need something new, the best place to start looking is by asking your friends and family if they have anything they are willing to sell you. You’ll be helping them get rid of something they don’t want and you’ll be saving some extra cash by getting the items used.
Two days of crying…
I want to ask you a question that could solve your financial, credit, and debt problems …
But first, a quick story …
One of my friends, Jocelyn, told me that she was in tears for two days.
A mom with Baby #2 on the way, Jocelyn had decided to let go of her nanny …
She told me she felt a little silly crying about it … compared to some people’s problems, letting go of the nanny is hardly a big problem.
But it was a big lifestyle-decision for Jocelyn and her family. You see, the nanny has cared for their daughter since she was four months old. And with Baby #2 on the way, Jocelyn’s family is going to need a nanny again in about four months.
But her daughter just started preschool, and her son isn’t due for about two more months. Once her son is born, Jocelyn won’t be working much during the first few months.
She figured she could save a boatload of money by letting go of the nanny…
But the decision made Jocelyn sob. She was going to have to hire another nanny once she went back to work.
Jocelyn couldn’t image leaving her new child alone with a stranger. The thought made her sick to her stomach.
Then Jocelyn’s sister said something smart:
“I don’t think this is an area where you should be frugal. If you want to save money, sell one of your cars. Think about it … at the end of your life, would you rather look back and say: I’m sure glad we had two cars? Or would you rather say: I’m sure glad we made sacrifices so that we could surround our children with people who love them?”
Jocelyn thought about it and realized she could make a ton of sacrifices elsewhere. She and her husband could plan their meals a little better and save about $200 a month in groceries. They figured a way to lower the amount they paid for car insurance. And they made a deal with the nanny that made financial sense for everyone involved.
They made it work.
So what does this have to do with credit?
A lot of credit problems are actually spending problems. People make rash, spur-of-the-moment choices that don’t reflect their truest desires. They buy the latest iPhone instead of paying a credit card bill. They buy a new pair of shoes instead of saving money for a vacation.
If you think you are someone who makes bad decisions when it comes to spending money, ask yourself the same question Jocelyn asked: “At the end of my life, would I rather have this or that?”
Ask this question before making any purchase or budgetary decision:
At the end of your life, would you rather look back and say: I’m sure glad I had the latest iPhone? Or would you rather say: I’m sure glad I pinched pennies and saved money so that I could take care of my debt problems, invest in my child’s future, and take relaxing vacations with my family?
Spending money is almost always a choice between one opportunity and another. Just make sure you are taking advantage of the right opportunity and putting your money where it matters!
Please share your thoughts with me below!!
– Philip Tirone
Bad Credit: Improving Your Credit Score Through Secured Credit Cards
For many people who’ve experienced financial issue getting credit in order to build your credit back up can become a huge issue. If you’re in this situation, don’t worry, there are still a few good options for you. One of these options that we recommend for fixing your bad credit is opening up secured credit card accounts.
What exactly is a secured credit card? A secured credit card is just like a regular credit card, but with one major difference. Your credit limit is secured with a cash deposit that the company will use if you default on your payments. It is important to understand that having a secured credit card does not mean you don’t have to pay your bill every month. These are not pre-paid debit cards where you spend the money that is in the account. They act exactly like regular credit cards where you are charged interest on your balance and late fees if you don’t make your payments every month!
Now, this might seem like a bad deal to the consumer, however, in order to help you build a good credit score your debtor needs to make sure they are covered in case history repeats itself. Here’s a look at exactly how they work:
- You choose a credit limit and make a deposit to secure that credit limit.
- The credit card company will issue you a credit card with that pre-set credit limit.
- You make purchases and payments just like you would with a regular card.
- After you have built a good credit history, you can request that card be converted to an unsecured card and to have your deposit refunded.
Also, if you decide that you do not wish to have that credit card anymore and close the account, the card company will refund your deposit, after any balance owing has been paid of course.
Why should you get a secured card?
There are two main reasons: First, if you don’t qualify for an unsecured card, they are fantastic ways to build your credit score… as long as you get the right card. The second reason you should get a secured credit card is that there are a lot of businesses that will not let you use their services if you do not have a credit card. Most car rental companies, for example, will not rent a car to you if you do not have a major credit card. For them, the fact that you have a credit card means that you are less of a risk when it comes to letting you loose in their car.
A few words about using your card…
There’s more to credit than just having a credit card. In fact, in order to build your credit, you will need to have between three and five credit cards. You’ll also need to make sure your balance never goes over 30% of your credit limit, even if you pay off the entire balance every month. Using just 30% of your credit limit shows the banks that you are responsible with your credit and are able to live within your means.
10 Tips for Being Dollar Store Savvy
The dollar store can feel like a frugal shopper’s dream come true. Everything is one set price, so there’s no need to comparison shop. They’re usually not very busy, so you have plenty of space to browse for deals. Even better, the stock is always changing, so there’s always something new to see. However, like most things, if you’re not careful even the dollar store can be a retail trap of overspending. To help keep you dollar store savvy, keep these tips in mind before heading out the door:
THINGS TO CONSIDER
1. Set a budget.
Just because everything is a dollar doesn’t mean you won’t overspend. In fact, the lower price point can lure you into putting more things into your cart than a shopping trip at a regular store. Bring only the cash you plan to spend or set a budget and firmly stick to it.
2. Check for quantity.
One way dollar stores make money is by selling you individual items you’d typically get bundled together such as socks, hair accessories and housewares. So while it’s only a $1 per item, you may have only been spending 75 cents per item in a bundled package at another retail store.
3. Check for quality.
Cheaper isn’t always better. If the item ends up breaking or you have to replace it sooner than expected, then you’re actually losing money. Always check the overall quality of the item and determine whether the cheaper version will hold up as well as the regular priced item.
4. Avoid certain consumables.
Products such paper towels, toilet paper and even food are not good dollar store buys. The reason for this is the quantities are usually off from regular store products. For instance, paper towels have bigger sheets so you use the roll faster. Food is usually in smaller quantities than you’d get at other stores. Light bulbs may be cheaper, but they are not energy-efficient which means you’ll be replacing them move often. Keep in mind the usages and quantity when buying consumables.
5. Avoid food products.
If you’re already a savvy shopper than you know that you can get better food deals with coupons at your regular grocery stores. You’ll also avoid getting inferior products or products with smaller quantities.
BEST THINGS TO PURCHASE
1. Paper Products
Keep in mind tip #4 and avoid paper towels and toilet paper. However, other paper products such as greeting cards, wrapping paper, books, office supplies and stationary can provide excellent savings at a dollar store.
2. Holiday & Seasonal Decorations
Seasonal items are fun and help capture the essence of the season or holiday you are celebrating. However, those extra items can add up. Dollar stores typically have a great array of inexpensive alternatives, especially if you’re the creative type. Before doing any holiday decor shopping always stop by your local dollar store to check out what they have.
3. Children’s Toys & Games
Given the fact that most toys don’t hold a child’s interest for more than a few months anyway, the dollar store can be a great resource for toy and game purchases. You’ll want to check quality on some of the products, but most items are fairly good substitutes. Puzzles and workbooks are great dollar store purchases.
4. Household Products
You can find an amazing assortment of household products at the dollar store from home decor to kitchen and tableware and even cleaning supplies. You’ll always want to check on the quality and if it’s worth the specific use you have for it. It may be cheaper to get a $1 baking dish if you know you’re using it for a potluck and don’t want to worry about getting it back. It’s also a good find for children’s dishes and bedding.
5. Storage Items
Storage items can be fairly expensive. Even at discount stores you’ll find yourself paying $5 or more for storage options. At the dollar store every piece is only a $1. They often have unique storage options as well. You’ll wan to visit at different times to check out new products that may make storing things in your home more effective.
How do you use your local dollar store?
Top 3 Cures for a Low Credit Score
A low credit score is bad news, particularly if you are trying to renegotiate the terms of a loan, applying for a home loan, trying to land a job, or searching for an apartment. In today’s environment, you need a high credit score for a slew of reasons. So if you need to build your credit score, don’t worry. Here are three strategies to boost your low credit score, and fast!
1. Correct your credit limits. Almost half of Americans have a credit card with a limit that is incorrectly reported to the credit bureaus. Credit card companies often omit or misreport credit card limits to the credit-scoring bureaus.
This causes your utilization rate (your balance expressed as a percentage of your limit) to appear higher than it actually is. Imagine that pay your Visa balance down to $300. Because your limit is $1,000, your utilization rate is 30 percent, which is the maximum utilization rate the credit-scoring bureaus want you to have.
So your score should increase, right? Not so fast. If the credit card company is only reporting a $500 limit, you will appear to be carrying a 60 percent utilization rate. And this hurts your credit score.
Are you one of the many Americans suffering from this mistake? Find out by pulling your credit report from www.720FicoScore.com. If the credit card companies are inaccurately reporting any credit limit of yours, immediately begin the process of correcting this mistake by using the forms and worksheets necessary to correct this mistake.
2. Become an authorized user on a credit card owned by a family member or spouse. If you have fewer than five credit cards, becoming an authorized user on a family member’s credit card is one of the quickest ways to improve a credit score, so long as you choose an account with a clean credit history. Becoming an authorized user allows you to borrow the account holder’s clean credit history, which will cause your low credit score to quickly increase.
3. Find creative ways to lower your utilization rates. Your utilization rate is the balance you have on each individual credit card expressed as a percentage of the limit. If your limit is $4,000 and your balance is $2,000, your utilization rate is 50 percent. If your balance decreases to $1,000, your utilization rate drops to 25 percent.
The credit-scoring bureaus respond best to people with utilization rates below 30 percent. If you have a high utilization rate, your low credit score can start to improve by getting your utilization rate below 30 percent.
Obviously, you can lower your utilization rate by paying down your balance. You can also lower your utilization rate by transferring a portion of your credit card balances to credit cards with higher limits, or asking your credit card companies to increase your limits.
If you have fewer than five credit cards (the maximum number you should have), you could also open a new credit card that holds some of your debt. Keep in mind that opening a new credit card will cause your score to drop initially, but so long as you keep the balance below 30 percent and make timely payments, your score will start to improve in about six months.
And if you are married, be sure to read my article about how to build credit fast by transferring balances to your spouse’s credit cards.
Build Credit: The 30% Rule – Making Sense of Utilization Rates
What do you think is better? Having only one credit card that is near it’s credit limit that you pay in full each month or three to five credit cards with low balances that you pay off each month? If you picked the first option, you might be surprised to find out how harmful having a high credit balance actually is to your credit score.
Why would you want MORE credit cards with lower limits?
The proportion of debt that you carry on credit card to your credit limit is called a “utilization rate.” Credit bureaus look at this ratio as a factor in determining your credit score. The lower your utilization rate, the better your score. An ideal utilization rate is anything below 30%. We call this the 30% rule. That means that you only want to have credit balances that make up less than 30% of your actual credit limit. For example if your credit limit is $1000, your credit balance should never exceed $300.
What about if you pay your bills on time each month?
Credit bureaus are looking to see if you live within your means and use this 30% rule as measurement. Paying your bills on time shows you’re responsible for your debt, however it doesn’t reflect your lifestyle choices as well as the 30% rule does. That means you should NEVER let your balance exceed the 30% marker.
What about if you don’t have a preset limit?
In some cases, such as with American Express, you may not have a spending limit. In these situations the credit bureau will take the highest balance you ever had on your credit card use that amount as your default balance. If you’re highest balance was $8,000 that would mean your balance should never exceed $2400.
What should you do if you currently exceed the 30% rule?
The first option is to pay off any debt until your balance is under 30% of your credit limit. If this is not an option for you, you can transfer your debts between cards to keep them under 30%. In addition, you can try asking your credit card company for an increased balance. Just make sure to check they are reporting the new credit balance on your credit report or you may find yourself over the 30% limit.
Lastly, if you have less than 5 credit cards, you can try opening a new credit card to help move the balances around.
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