5 Components to Your Credit Score

2.Credit utilization

Credit utilization makes up 30% of your total credit score. This is the percentage of your credit that’s used. Because FICO looks at people that max out their credit cards as people who cannot handle debt responsibly, and they think a borrower should maintain low credit card balances.

So if you pay your bills on time and you don’t carry big credit balances, your two-thirds of the way towards a good credit score.

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