You can improve your score even faster if you can get your CUR below 10%, but any credit card balance above 30% will likely reduce your credit score.įor example, the fact that John owes $5,000 on his credit cards while Mary owes $3,000 does not necessarily make John a greater credit risk. Rather, creditors contextualize that total by comparing it to the sum of all your credit card credit limits.Ĭreditors generally want to see CURs below 30%. The importance of the CUR is that you can’t judge creditworthiness simply by the total of your credit card balances. One of the most important metrics for judging the impact of your credit card debt is the credit utilization ratio - or credit utilization rate (CUR) - which is the amount of credit used versus the credit line authorized, i.e., your credit card balance versus your credit limit.

If you can get a credit bureau to correct or remove inaccurate derogatory information, you should see an improvement to your credit score within a month or two. By law, the bureaus have a month to adjudicate each dispute. Each bureau accepts disputes via online facilities, or you can communicate through registered mail or over the phone.ĭIY credit repair is essentially cost-free but can be very time-consuming. You can correct misinformation by challenging your creditors to validate the information and by lodging disputes with the bureaus. Purging mistakes from your credit file can help an incorrectly depressed credit score rebound. Any other activity you don’t recognize.Indications of a late payment even though you paid on time.Naturally, your score can suffer if your credit file contains inaccurate information, such as: The bureaus use these reports to assign you a credit score. One of the major jobs of the three major credit bureaus (Equifax, Experian, TransUnion) is to compile monthly credit reports that include data about your debt repayments.

How big can a credit suisse gold bar be