Credit Utilization
CreditThe percentage of available credit you're currently using — keeping it below 30% is important for a good credit score.
Example
Example: You have two credit cards: Card A with a $5,000 limit and $3,500 balance (70% utilization), Card B with $10,000 limit and $1,000 balance (10%). Your overall utilization is $4,500/$15,000 = 30%. Paying Card A down to $1,500 drops overall utilization to 17% and could boost your score by 20-40 points within one billing cycle.