Revolving liabilities may have a great impact on your credit score. This type of loan falls under both the utilization category and payment history category that is considered by credit reporting agencies.\u00a0<\/b><\/p>

The payment history category holds up to thirty-five percent of your credit score and credit utilization holds thirty percent. Let\u2019s say that you have a credit card that has a limit of five thousand.\u00a0<\/b><\/p>

The credit bureaus will check how much credit you utilize from that five thousand every month to determine your credit score under the credit utilization category.\u00a0<\/b><\/p>

The monthly payment on your debt will change on a month-to-month basis depending on the amount that you utilize from five thousand.\u00a0<\/b><\/p>

Along with that, they will also check if you are making your payments on the credit card on time with at least the minimum payments.<\/b><\/p>

If you are utilizing this limit of more than thirty percent every month it will harm your credit scores<\/u><\/a>.\u00a0<\/b><\/p>

If you miss your payment on this credit card or make a payment less than the minimum amount due, your credit score will have a negative impact.\u00a0<\/b><\/p>

Hence, it is suggested to make your minimum payments on time and keep your credit utilization under thirty percent to make sure your credit score is right up there.<\/b><\/p>\t\t\t\t\t<\/div>\n\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t