How Does Credit Card Usage Impact Credit Score?

One thing we wish our homebuyers knew ahead of time…

One of the biggest factors in your credit score is something called credit utilization—essentially, how much of your available credit you're using. A good rule of thumb is to keep your credit card balances at 30% or less of your total credit limit. For example, if you have a card with a $10,000 limit, try to keep the balance under $3,000. Staying within this range signals to lenders that you’re managing your credit responsibly, which can have a positive impact on your overall score.

If you have questions or want to pull exact numbers for your situation, a Cream City Mortgage Loan Officer is here to help you. Reach out to us today!