Do Unused Credit Cards Hurt My Credit Score?

Inactive credit cards—those that are accounts available to use but that you’re not regularly using to pay for items—can damage your credit score in a few ways. Impacts to your credit utilization ratio First, your credit utilization on the account will be zero percent. That sounds like a positive thing, right? Well, yes and no. …

Is My Credit Karma Score Accurate?

Can you trust the credit score provided by Credit Karma and similar tools provided on your credit card’s smartphone app? It seems that with just a click of a button, you can view your credit score—but does that number match what an actual credit reporting bureau has? It is a common misconception that there is …

Should I use my tax refund to pay off my car loan and credit card debt?

What’s the smart thing to do with your tax return? Should you save your refund for a future emergency? Should you use your tax return to pay off debt? For most of us, tax season signals the impending arrival of some so-called extra money. While it’s not free money—it’s actual earnings on which you overpaid …

Can I let my credit score slide during a recession?

If global health pandemic was not enough to put a damper on 2020, then the recession declared in June sure got our attention. With so many changes to your life right now, it is understandable that keeping an eye on credit scores may feel less important. But, as rocky and uncertain as things may be …

Installment Credit Versus Revolving Debt

What’s the difference between installment credit accounts and revolving debts? The answer impacts your credit score and/or the way a potential lender evaluates your financial picture. Let’s unpack these credit buckets. Installment Credit Installment credit is a loan that offers a borrower a fixed, or finite, amount of money over a specified period. Examples are …