Having good credit has never been as important as it is today in mortgage lending.

I get asked all of the time, " how do our credit card balances effect our credit scores? and should we pay one off vs. paying all down? and if paying them down - how much should we pay down to better our scores?"

So here is what I have learned over the years:

try to keep your credit card balances below 30% of their available limit at all times, ESPECIALLY during the loan process. If you decide to pay down balances, do it across the board. Meaning, make an extra payment on all of your cards at the same time. Conversely, if you run you balances too high, meaning at the limit or actually go over the limit, then you can expect to lose 50-100 points on your scores - and QUICKLY.

Sonny Baker

Bedrock Lending