Josh: What is the effect of balances?

Samira: Balances is another part of what is included in your credit score. Obviously, if you’re maxed out on your credit cards, it’s going to hurt your score. Why? You have borrowed too much money. They question whether or not you’re a good risk or you’re a high risk of defaulting. The other side of the coin is if you don’t use your credit cards and you have no balance on any of them, ever, then your credit will eventually go stale, becomes old and obsolete.