06-01-2019, 05:20 AM
(06-01-2019, 05:20 AM)chimpledfoothill Wrote: Your credit score will likely be hurt if the amount of debt you owe is close to your credit limit. According to one rule of thumb, creditors may be hesitant to lend you money if your debts are more than 75% of your credit limit. So, make sure you know how much you owe on your credit cards and other debt. If you can, pay off your full credit card balance every month. If you can’t, try to keep a low balance and pay down as much as you can.
If you are having trouble paying your bills or repaying your loans, contact your creditors about repayment plans. If you arrange a repayment with a creditor, make sure—before you make any payments—that you have a written agreement from the creditor that as long as you keep up your end of the plan, the creditor will report your account as current, paid off, and not late. It is better to work out a repayment plan sooner rather than later because creditors generally won’t work with you after they send your account to a debt collection service, and that will likely hurt your credit score more.