A lesson on credit utilization

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February 1, 2013 by myfabfico

I’m being incredibly open about this journey. Primarily because I want people to see that, if you work at it, things will begin to happen.

Progress

This snapshot was taken from my Creditkarma profile. It was my first time updating it since paying down my credit card debt. CreditKarma uses a FAKO score, which is not always accurate, but can give you and idea of the actual changes that can occur on your credit report.

If you note the 60 point increase in score, its attributed to a few factors, but mostly due to my reduction of credit utilization. Creditors like to see you use about 10% of your available credit. For example if your credit limit on a card is $1,000 you should strive to keep the balance at or below $100. They take this as an indication that you are responsible with the the credit they extend to you.

So the proof is in the putting.

I’m on my way. You with me?

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