- "Applying for new credit accounts may hurt your score less.
- Having high balances on your credit cards could hurt more.
- Actively using the credit accounts you have may be more important.
- Having both revolving and installment accounts on your report could help you more, as the new formula is more sensitive to your ability to handle different types of credit."
Throughout the article, Liz Pulliam Weston stresses the importance of keeping credit balances well below the limit suggesting not to exceed 30%. This is because FICO uses this percentage as the largest factor in your score. Unsure of your FICO? While you can get a free annual report yearly at AnnualCreditReport.com, it's not as easy to find out your FICO score without applying for a loan. Having said that, they will for a price, include your FICO score with your credit report. Each of the three reporting companies will have a different score. To play it safe, use the lowest score.