Credit Utilization Explained: The 30% Rule, and Why Lower Is Better
Here is a slightly unfair fact about credit scores: two people with the exact same $3,000 of credit card debt can have very different scores. The difference often comes down to one number most people never check, their credit utilization ratio.
The good news is that utilization is one of the fastest parts of your credit score to improve. Unlike a late payment, which lingers for years, utilization is recalculated as your balances change. Pay down your cards and your score can respond within a billing cycle or two.