Heavy Use of Your Available Revolving Credit

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My wife and I jumped for joy today when our myFICO ScoreWatch alert told us that our FICO credit score hit the much sought after 770 mark! Actually a FICO credit score of 760 is good enough to get you the best home mortgage interest rates out there. We had been stuck on 745 for a long time before we received the good news. Note that you can see the MyFico alert revealing that our FICO credit score has exceeded the target score of 760 in the screen shot below.

We have never been late on any of our payments in the last 8 or 9 years. On time payments account for 35% of ones credit score calculation. However, even if you make your monthly payments punctually, if your overall amount of debt is high or close to your credit limit then your credit score will be lowered due to “heavy use of your available revolving credit”. ┬áPut a little more simply: even if you are on time with your payments, if you are close to maxing out your credit limits then your credit score will suffer AND if your credit score suffers then you SUFFER.

Your credit score influences your car payments, home mortgage payment(or even whether you get approved for a home mortgage), employment since potential employers can pull your credit score, and how much you pay for your insurance premiums. So your 3 digit credit score pretty much controls the quality of your life!

My wife and I either used our debit card or payed cash for everything for the last 2 months in order to decrease our credit card balances AND now we are line for 30 year fixed mortgage interest rates as low as 3.2%

My apologies if I sound too arrogant or cocky, but we made some good choices and now stand to benefit by saving around 200 dollars per month on our home payment as well as killer rates for our new SUV.

Heavy Use of your Available Revolving Credit
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2 comments on “Heavy Use of Your Available Revolving CreditAdd yours →

  1. Related to this topic is mortgages for people who have declared bankruptcy. What I mean is “should people who have declared bankruptcy be allowed to EVEN apply for a home mortgage?”

    The answer is a resounding NO! Why do you irresponsible people who mismanage your finances think you deserve to move into a nice house right next door to people who are responsible about their money management?

    You are same people who drive up credit interest rates because you are the lowlifes who default on your credit card balances. You do not pay back what you already owe AND YOU STILL WANT TO MOVE INTO A NICE HOUSE!!!!! WHAT IS WRONG WITH THAT PICTURE??? YOU DESERVE NO MORE THAN A RUN DOWN APARTMENT AND YOU WANT EVERYBODY TO JUST FORGET THAT YOU CAN NOT PAY YOUR DEBT SO YOU CAN MOVE INTO A NICE HOUSE AND EAT AT THE SAME NICE RESTAURANTS AS FOLKS WHO ARE FINANCIALLY RESPONSIBLE!!!!!!

  2. I am pretty sure the last poster was not the real Billy Joe Dupree of Dallas Cowboys fame. I heard Billy Joe Dupree is living the quiet life near Monroe Louisiana. He is not one of those ” where are they now ” types. He does not enjoy being in the public spotlight.

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