Temporary Spikes In Card Balance May Or May Not Affect Credit Scores

There comes a time in when almost every consumer charges their credit card more than they usually do. For some this may be during the time of holidays and Christmas shopping and for others it may be when they plan their annual holiday with the family. This are the times when the balances may run high on your credit card every year. No matter what the reason, your credit score does not take the time of the year or the pattern of the transaction into consideration. What it does take in to consideration like balance to credit ratio.

If you are running a high balance on your credit card at any time you are considered a higher risk potential. This may affect your credit rating for a couple of months.

However, if you pay off your balances in the next month or next couple of months you will find that your credit rating gets restored to its usual self. The fact that this happens to you every year will not make a difference.

What will make a difference is how you manage you credit situation overall.

If your credit history is good then it is possible, in fact likely, that your credit score will not be affected much because you happen to run a high balance on your credit card for a short period. The secret to a god credit score is not just managing one thing but collectively taking care of the information on your credit report. Order yours for free from the credit bureau and see what factors are affecting your credit score the most and which ones you can do something about to make your credit rating better.