Balance of Your Credit Cards

So lets break down the next biggest factor affecting your credit score. The balance of your credit cards compared to their limits makes up 30% of your score.

You have a credit card with a $1000 limit & borrow more than $500 on the card without paying it off before it reports the balance to the credit repositories. Your scores will be hit by up to 25 points or more. Keep your balance below 50% of your limit whenever you plan to apply for credit. To be safe it should be under... 50% of the limit a minimum of 30 days prior to applying for credit but 60 days is even safer.