Often a poor credit record is caused by owing too much to creditors.  This is especially true for those who carry credit cards with balances which are close to their limits.  We will be addressing the issue of your debt in two parts.  In this email we are focused upon structuring debt in such a way that you can raise your credit score.

Here is an example of a consumer’s credit situation:

*Consumer A has one credit card. The limit is $15,000 and they owe $15,000.

*Consumer B has three credit cards. The limit on each is $10,000 and they owe $5,000 on each card.

You can see that consumer A is at their credit limit and can borrow no more on their one card. Consumer B owes the same amount but is only at 50% of their limits.

So, does that mean you should open more cards and spread the balances out?  This could be a solution; however, we recommend that you do not open any accounts or pay down any debts without speaking to us first. We have access to advanced credit tools which will let you know what action is likely to affect your score by how much.

I hope you are finding this information helpful. Keep in mind that we welcome any referrals of those you know purchasing or refinancing a home.  Thanks for keeping us in mind.