With more people maxing out their credit cards and falling behind on payments, according to the U.S. Federal Reserve, many are at risk of doing damage to their
credit score s and their ability to borrow money in the future.
“We are seeing bigger balances right now, and bigger balances lead to late payments later on because people get overwhelmed with their payments and they can't afford them,” Bingham said. “The difference between a 675 and a 680 credit score in an average purchase is $30-35,000 in purchasing power that’s been lost,” Bingham said.
“Maybe it's some department store or home improvement store. Go pay it off so you take that away,” he said.Utah's 'hidden' home ownership costs increase 44% in 4 yearsAfter addressing the smaller balances, Bingham suggested focusing on cards with larger balances, particularly those exceeding their credit limits, because that does a lot of damage to your FICO Score — the mostly commonly used credit score by lenders.
Credit Card Payments Balances Bingham Debt Borrowing Utah
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