Question: Does Debt Affect My Credit Score?
Answer: Yes. Your level of debt is 30% of your credit score. Having too much debt can bring down your credit score.
When your credit score is calculated, both your credit card and loan balances are considered. The higher your credit card balances are compared to your credit limit, the worse it is for your credit score. The same thing goes for your loan balances compared to their original loan amounts. As you pay down your credit card balances and loan amounts, you should gain credit score points.
