Amount of Debt Responsible for up to 30% of Credit Score

Yesterday I read an article in the Chicago Tribune in relation to a discussion about "credit repair" companies.  The article pointed out how most companies advertising "credit repair" services are simply offering scams to consumers.  But, what I found interesting (since I already knew credit repair service offerings were suspect) was that the Tribune identified several factors that make up part of one's credit score.  One of the biggest factors that reportedly accounted for 30% of a person's score was amount of debt.  This is something I have been explaining to my clients for years.  If you have too much debt, even if you're paying it timely, you don't have good credit.  In fact, since bankruptcy can eliminate debt, for many people it is a first step toward IMPROVING credit! Yesterday I read an article in the Chicago Tribune in relation to a discussion about "credit repair" companies.  The article pointed out how most companies advertising "credit repair" services are simply offering scams to consumers.  But, what I found interesting (since I already knew credit repair service offerings were suspect) was that the Tribune identified several factors that make up part of one's credit score.  One of the biggest factors that reportedly accounted for 30% of a person's score was amount of debt.  This is something I have been explaining to my clients for years.  If you have too much debt, even if you're paying it timely, you don't have good credit.  In fact, since bankruptcy can eliminate debt, for many people it is a first step toward IMPROVING credit!