I can’t reiterate enough the importance of paying down your revolving credit card balances. See the chart below to see how your credit score drops based on the percentage of the maximum limit.

Revolving Debt Thresholds
(Example below is based upon just 1 credit card)

Percentage of Max Limit Credit Score Drop
88.78-100% = Maxed Out 40 points
68.72% 35 points
45.91% 30 points
33.37% 25 points
23.69% 20 points
15.89% – zero balance 0 points

As you can see, you do need some credit. But get those credit cards to 20% of the balance and increase your credit score immediately by 20 points, per card.

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