Lower your credit utilization
How much of your credit limit you're using is one of the biggest parts of a credit score.
- Utilization = card balances ÷ credit limits. $900 on a $3,000 limit is 30%.
- Lower is better. A common rule of thumb is to stay under 30%, and people with top scores tend to be well under 10%.
- Card companies usually report the balance from your statement, so paying before the statement closes lowers the number they report.
- Unlike late payments, it has no memory: once balances drop, the score effect follows.
Try it now: Look up one card's statement closing date in its app.