Released: October 03, 2019
Debunking a credit score myth: Use less than 30% of your credit limit
Source: Michelle Singletary, Washington Post (Paid Registration)
The top two factors that determine your credit score are your payment history and the amount you owe. If your credit card limit was $1,000, you should limit your purchases to no more than $300. This would apply for each individual card and your overall outstanding balance on all your credit cards.
In fact, if you’re striving for a perfect 850 credit score, your utilization should be in the single digits as it concerns credit utilization.
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