Balance Management


When coming up with or seeking out ways to manage your credit score, one way that can be overlooked is credit balance management.


The big credit bureaus are looking at customers using credit kind of like a gymnastics judge looks at a gymnast on the balance beam. They are looking for a well managed routine where the customer is not wildly off-balance. In addition, they are looking for warning signs like whether the customer is about to fall.


What that analogy really looks like in real life is that they want you to responsibly use the debt balances that have been granted to you. A customer that is constantly riding the edge of their limits is like a gymnast pushing their limits on a balance beam. Arms can be flailing around to maintain balance and that detracts from the poise of the routine.


A sudden large purchase on a credit line that is already well-used is like the gymnast that misses a landing on the beam with one foot. The gymnast can recover and continue, but suffers in the scoring.


Managing your own use of credit balances can be helpful in managing your credit score. Having a system or plan for what your expenses are and the limits you place on them can help you guard against sudden "needs" for credit use. As with many things, with enough practice, you can build a routine that is flowingly graceful and better suited for landing the scores you truly want.