Debunking a credit score myth: Use less than 30% of your credit limit

Source: Michelle Singletary, Washington Post (Paid Registration)

The top two factors that determine your credit score are your payment history and the amount you owe.  If your credit card limit was $1,000, you should limit your purchases to no more than $300. This would apply for each individual card and your overall outstanding balance on all your credit cards.

In fact, if you’re striving for a perfect 850 credit score, your utilization should be in the single digits as it concerns credit utilization.

Read Full Article: Debunking a credit score myth: Use less than 30% of your credit limit

 

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