Your credit score is a starting point. Understand the story behind it.
Learn what a score represents, why scores differ, and what deserves your attention.
Read the guideHealthy habits
Credit utilization: a little clarity on your balances
Understand the relationship between your card balances and credit limits.
What utilization means
For revolving credit, utilization compares reported balances with credit limits. For example, a $200 balance on a $1,000 limit represents 20% utilization. This is an illustration, not a score forecast.
Balances can change before you check
The balance a lender reports may differ from your current balance. Review statements and ask your issuer about its reporting schedule when needed.
Make a sustainable plan
Keep spending within your budget, pay on time, and reduce balances when practical. You do not need to carry interest-bearing debt to build a credit history.
Continue with trusted resources
CFPB: What is a credit score?Results vary by individual credit profile. No score increase, deletion, or credit approval is guaranteed. Accurate and timely negative information generally cannot be removed simply because it affects a credit score. You can dispute credit report errors yourself at no charge.
General educational information. Not legal or individualized financial advice.
