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23
Jan

7 Ways to Fix Your Credit (part 3)

3. Display Available Credit

This factor is what the credit geeks call your utilization ratio and it’s worth roughly 30% of your credit score. It’s the category of amounts owed in the credit scoring pie.

The goal is to have available unused credit on your revolving credit lines, like a credit card. For example, if you have a credit limit of $1,000 you’d want to keep a monthly balance of about 30% or $300. This way you’d have $700 of available and unused credit.

This will make you appear to be in a secure financial position and a responsible credit user. It makes sense, because if your credit card is maxed out you’d naturally appear to be a greater credit risk.