Your credit card balance is more than just the amount of money you owe to your credit card issuer. Your credit card balances have a direct impact on your credit score. As the credit card balance updated on your credit report changes, your credit score can fluctuate, too.
A Brief Explanation of Credit Scores Your credit score is like a numeric grade that indicates where your credit history stands at a specific point in time. The credit score is based on information about your credit card, loan, and other debt accounts listed in your credit report. Things like the account balance, payment history, credit limit, and age of the account are listed on your credit report and used to calculate your credit score. Each factor is given a differ
ent weight in calculating your credit score:
- Payment history counts 35% of [...]