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Three reasons were given: Utilization of credit limit in recent months.
Utilization of credit appears to be major factor for credit recipients raising income.
No doubt that last fact comes as a surprise for many, but it is a real issue -- even though a growing number of states limit utilization of credit reports as part of a job interview, many employers will, with permission, review an applicant's credit history in order to evaluate his or her trustworthiness and employability.
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A good rule of thumb is to keep your total credit utilization of your credit card accounts under the 10% mark.
But avoid using the card in your wallet with the lowest balance, since the closer you come to reaching your spending limit, the worse your credit utilization ratio (the amount of credit you use versus the amount of credit available to you) looks to the credit bureaus who calculate your FICO score.
For example, if you've used $1,500 in credit and have $5,000 worth of total available credit, then you'll have a credit utilization of 30percentt.
U ratio utilization ratio, EFX # the total number of credit cards from Equifax data.
A big part of having a decent credit score is both the longevity of credit and a debit-utilization ratio.
At the same time, keep your current credit in tip top shape by paying your bills on time, not opening new lines of credit unnecessarily and keeping your credit utilization low.
For you to build the right kind of credit history, you want your credit utilization to be low.
By doing this, you will increase the amount of credit you have available, which lowers your utilization ratio.
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Justyna Jupowicz-Kozak
CEO of Professional Science Editing for Scientists @ prosciediting.com