01
Credit utilization is the amount of revolving credit being used divided by the total revolving credit available.
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02
Credit scoring models consider how close revolving balances are to available credit limits, and high utilization can negatively affect scores.
supported03
CFPB consumer guidance notes that experts often advise keeping revolving credit use at no more than 30 percent of total available limits, while some guidance suggests even lower usage; 30 percent is a guideline rather than a guaranteed scoring threshold.
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