Young Adults · Credit & debt
How credit scores actually work
The five things that drive your score and what to focus on first.
9 min read
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Sam has a card with a $1,000 limit and currently a $450 balance. What's his utilization, and is it good?
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Utilization is 45%. That's higher than the 30% rule of thumb — it's not awful, but it's pulling his score down. Paying it down to $300 or less before the next statement closes would help.
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