What is the ideal debt ratio to maintain in terms of your credit score? I pay my balances off every month but enjoy taking advantage of my 25 day float and my score is being penalized. Thanks!! Mirage7
0% is ideal. 10-30% for ideal credit rating. over 50% your scores take a hit. over 70% is the huge red flag. kev
Mirage 7, Keep in mind that ratios are only one part of a FICO score. The age of your accounts has a lot to do with it as well as any derogatory history. It may well be your accounts aren't old enough to start to help your scores. If given the choice between paying interest and not paying interest then, don't pay interest.
I can handle pretty high monthly payments and it appears that the high balances have without a doubt been affecting my score in terms of the debt ratio. It just doesn't matter that I am paying it off each and every month. In any case, thanks much for the input. I have no intention of paying interest if I can help it. But I think I will cut some of my card usage and stick to cash until I earn much higher limits. Cheers! Mirage7
