Vol. 01 · Issue 04

The Smart Money — Weekly personal finance dispatches

Personal finance for people who want to be great with money — written by the friend who already is.

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Utilization

Also known as: Credit Utilization Ratio

What it is

The percentage of your available credit you're using at any given moment — reported per card and in aggregate.

What it really means

The second-biggest lever on your credit score after payment history. Under 10% overall is where the scoring model rewards you; 30% is the number everyone quotes but it's already too high.

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