7 Ways To Improve Your Credit In 6 Months


3. Amount owed (credit utilization ratio)

Another component of the FICO score is the amount owed or the debt to credit ratio. This portion of the FICO score accounts for 30% of the credit score, being the second most important factor of the calculation. This ratio compares how much debt you have to how much available credit you use. For this ratio, carrying a high ratio will lower your overall credit score.