credit utilization
2 questions
- Finance
Does closing a credit card hurt your credit score?
Yes — closing a card can lower your score by raising your utilization ratio and reducing your average account age. Here's when it's worth it anyway.
- Finance
What is credit utilization and how does it affect my score?
Credit utilization is the percentage of your revolving credit limit you're currently using — it makes up 30% of your FICO score, and keeping it below 10% (not just 30%) gives you the best possible impact.