Jake
Lv 7
Jake asked in Business & FinanceCredit · 4 weeks ago

How do people with lots of debt still have good credit?

Like they have $5000 in their credit cards and its used up, student loans, car loans, and sometimes they even have a house.

I know some people that only make the minimum payment on their card and their credit score is like 777.

I heard as long as you make the minimum payment it should not hurt your score, and that you should keep up with car or student payments.

2 Answers

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  • Amy
    Lv 7
    4 weeks ago

    Keep in mind that a credit score is for lenders to rate potential borrowers. If you're paying tons of interest on time every month, they'd love to offer you even more credit.

    Having a variety of loan types is actually good for your credit score.

    Maxing out your credit limit does hurt your score. If you only pay the minimum then your utilization will go down very slowly - or go up if you keep making new purchases.

  • Anonymous
    4 weeks ago

    Making timely payments is only one factor in a credit score. Try Googling Transunion or Equifax and learn how they determine your score.

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