Avoid having high balances on your credit cards

When multiple revolving balances have exceeded their credit limits, credit scores drop substantially.  Credit scores are affected when one or more revolving loan balances exceeds 50% of its limit.  The risk increases when multiple revolving accounts exceed 50% of their credit limit ratio.  The more loans, the greater the impact on our credit scores.

Depending on the number of accounts, the payment history, and the type of lender, your score can drop 100 points or more when multiple accounts have high debt ratios.

I have heard of an individual that had a 750 credit score that was on the verge of going down to a low 600 score because of the high ratio on credit cards. 

Since credit scores can quickly drop to low levels, consolidating by refinancing the debts with a new loan is unlikely.  By avoiding this dangerous credit risk, we can avoid having a low score for a lengthy period of time.  The only real solution to the problem is to pay down the balances.  Don't let multiple balances exceed 50% of the limit and especially 100% of the credit limit.  It is a sure path to credit destruction.

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