Credit Scores and Debt
By Larry Goldberg
We all know how important our credit scores are, right?
But did you know that the amount of debt you have can impact your credit report? People who are drowning in credit debt run the risk of lowering their credit scores significantly, and this happens all too often with today’s consumers relying so much on their credit cards.
Now, having some credit debt is not necessarily a bad thing. In fact, your credit report and score will be better if you have some debt because it shows credit card companies and other lenders that you have established yourself as a credit card user and can manage your accounts.
Credit debt only leads to a lower credit score when you have amassed so much that it surpasses, by far, your available credit. High credit debt might also indicate that you aren’t using your credit cards wisely or are not able to pay them down in a timely manner. Things like this can negatively affect your credit report, which will in turn impact what you can and can’t do with your money.
To find out more about accessing Identity Theft Protection - Repairing Your Credit and learning how high debt can affect it.