09/02/2026
Many people have heard of the 30% credit utilization rule, but it's often misunderstood. The truth is, there's no rule that says 30% automatically gives you a good credit score.
Keeping your credit utilization lower is generally better. While staying below 30% is a common guideline, using 10% or less, and in some cases around 1%, may be more favorable. Most importantly, remember that payment history is the biggest factor in your credit score, so making on-time payments should always be your top priority.
The more you understand how credit works, the easier it is to make informed financial decisions and avoid common myths.
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