Amounts owed (aka debt), represents 30% of your credit score. FICO views borrowers who have a habit of maxing out credit cards or who are extremely close to their credit limits as people who cannot handle debt responsibly. Therefore, a borrower should maintain low credit card balances. It is recommended that the amount owed should not exceed 30 percent of the individual's credit limits. This applies to individual credit cards as well as the overall level of debt. This concept is commonly referred to as "utilization rate". Keeping your utilization rate under 30% is ideal. If you're in need of credit establishment or restoration services, contact us today.
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