One of the best ways to improve your credit score in this category is to keep your credit card and other "revolving credit" utilization low. High balances compared with your limits will lower your overall credit score.
Another way to improve your score here is to pay off debt rather than moving it around. Paying down revolving balances is the most constructive way to raise your score in this category.
What is a good credit utilization ratio?
Try to keep your utilization below 30%, and lower is even better. For example, if your total available credit is $10,000, try not to carry more than $3,000 in total balances across all of your cards. Raising your available credit, for example through a credit limit increase, can also lower your overall utilization, as long as your balances don't grow with it.
Amounts owed and credit repair
Collection accounts and charged-off balances that are reported incorrectly can make your debt look bigger than it really is. If you're not sure your balances are accurate, read about credit report errors or book a free consultation with our Las Vegas credit repair team.
