The Wallet, a Wall Street Journal online blog, wrote a piece about 45 minutes ago that serves as a nice prelude to my story tomorrow on "balance chasing (link here)."
At the Wallet, John Ulzheimer, president of credit.com, talks about the FICO impact of recently-lowered credit limits. What I really liked is that Ulzheimer is advocating keeping credit utilization at 10% or less. Most commentators use the 30% figure as a benchmark, which I think is way too high in this environment. Nice to see Ulzheimer touting the 10% figure.
From the blog: Are Shrinking Credit Limits Silently Hurting Your Credit Score? (link here)
“[Lower credit scores] could be catastrophic for some people,” says John Ulzheimer, president of Credit.com Educational Services. “And the problem is that the consumer doesn’t realize it’s happening.”
I did find this particular quote fascinating:
“You should make your credit score a priority right now,” Mr. Ulzheimer says. “Your credit score is as much of a wealth building tool as owning the right stock.”
Anyhow, give the blog entry a read. Think of it as a companion to the story I have written for tomorrow, which is titled: Chasing The Balance -- What It Is And Why It Sucks.