The Truth About Credit Scores

April 20th, 2012 - By Julia Austin
"Cutting credit cards"

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You should cut ties after paying debts

This move won’t look good when asking for a loan because it might bump up what’s called your debt-to-credit utilization ratio. This is calculated by dividing your outstanding credit card debt by the sum of all your credit card limits, combined. You’ll benefit your score if you use around 10% of the credit available for you, but no more.

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