Even if you have a good credit score the amount of debt that you have could be destroying your chances of getting a mortgage or business loan, or could be preventing your credit from being even higher. Having a lot of unsecured debt will show banks and lenders that you have a lot of money that you are paying each month on items that have no value, and this is risky. Paying on a house or car is different because you are able to sell these items if you don’t have the money to pay them. Unsecured debts can gain interest and fees quickly and get out of control.

Lowering your debt to income ration can help you bring up your credit score and get your approved for a loan. Make large payments on the debts that you have now and don’t have more than two open credit cards. If you have credit cards that show no balance this means that you could easily get yourself into debt. Cut the amount of debt that you have if you want to get into a home or larger loan, and cut the amount of open unused debt that you have access to as well.