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  3. Credit Utilization
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Credit Utilization

The ratio of your current credit card balances to your credit limits, expressed as a percentage.

In Detail

Credit utilization is one of the most important factors in your credit score. Experts recommend keeping utilization below 30%, with under 10% being ideal for the best scores.

Related Terms

Credit Score

A numerical rating (typically 300-850) representing your creditworthiness based on your credit history.

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