Credit Utilization: Does Carrying a Balance Help Your Score?

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Credit Utilization: Does Carrying a Balance Help Your Score?

Nathan Hamilton

Motley Fool
May, 12th 2017

While the underlying algorithms of credit scoring models are shrouded in mystery, the broader pillars are well understood, including credit utilization, which measures the amount of debt you're carrying in relation to your total available credit. Credit utilization is an important factor in improving your credit score, as it accounts for 30% of your total FICO score.

In the previously recorded Facebook Live video segment below, Motley Fool analysts Michael Douglass and Nathan Hamilton answer a user-submitted question about how much debt cardholders need to carry to land a higher credit score.

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