Credit utilization
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How much of your limit you’re using. It’s about 30% of a FICO score. The CFPB’s advice: keep it under 30%; lower is better.
Your card usually reports your statement balance, so pay most of it down before the statement closes and the bureaus see a small number.
Closing a card removes its limit: a $600 balance on $6,000 of limits is 10%; close a $3,000 card and it’s 20%.
From FILE 004: the two dates on every card, or check yours with the free First Card Calculator.
Sources
Official and government data first. Every quote is word for word; follow the link to check it yourself.
myFICO · “What’s in my FICO® Scores?”
“payment history (35%), amounts owed (30%), length of credit history (15%), new credit (10%) and credit mix (10%)”
myfico.com (opens in a new tab)Consumer Financial Protection Bureau · “Credit score myths that might be holding you back from improving your credit”
“Keeping a low credit utilization ratio—under 30 percent—shows lenders you’re responsible and have available credit.”
consumerfinance.gov (opens in a new tab)myFICO · “What’s in my FICO® Scores?”
“payment history (35%), amounts owed (30%), length of credit history (15%), new credit (10%) and credit mix (10%)”
myfico.com (opens in a new tab)Consumer Financial Protection Bureau · “Credit score myths that might be holding you back from improving your credit”
“Keeping a low credit utilization ratio—under 30 percent—shows lenders you’re responsible and have available credit.”
consumerfinance.gov (opens in a new tab)