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📘

Step 4 in Your Credit Score Power Series

If you’re serious about improving your credit score, there’s one metric you can’t afford to ignore: credit utilization. It accounts for nearly 30% of your FICO® score, and it’s one of the fastest levers you can pull to boost your profile and unlock better loan terms.

Whether you’re applying for business funding, real estate loans, or prepping for a flip, lowering your utilization can mean the difference between “almost qualified” and “fully approved.”

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🔍 What Is Credit Utilization?

Credit utilization is the percentage of your available revolving credit that you’re currently using. It’s calculated like this:

Credit Utilization = (Total Credit Card Balances ÷ Total Credit Limits) × 100

For example:
If you have $3,000 in balances across cards with $10,000 in total limits, your utilization is 30%.

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🎯 Why It Matters to Lenders

Lenders view high utilization as a sign of financial stress—even if you’re making payments on time. A lower ratio shows you’re managing credit responsibly and aren’t overly dependent on borrowed money.

Utilization Rate	Impact on Score	Lender Perception
0–10%	Excellent	Low risk, high approval odds
11–30%	Good	Acceptable, but room to improve
31–50%	Fair	May trigger higher rates or lower limits
51%+	Risky	Likely to reduce funding options

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⚡ How to Lower Your Credit Utilization Fast

1. Pay Down Balances Strategically

• Focus on cards with the highest utilization first
• Even small payments can shift your ratio quickly
• Avoid maxing out any single card

2. Request Credit Limit Increases

• Ask your issuer for a higher limit without a hard inquiry
• This improves your ratio instantly—without spending a dime
• Works best if your account is in good standing

3. Spread Balances Across Cards

• If one card is maxed out, move part of the balance to another with room
• Keeps individual utilization low, which FICO also considers

4. Time Your Payments Before Statement Dates

• Credit bureaus see your balance as reported on your statement
• Pay down your balance before the statement closes to show lower usage

5. Avoid New Charges Until You Apply

• Keep spending light while prepping for funding
• Every dollar counts when lenders review your file

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🧠 Bonus Tip: Don’t Close Old Accounts

Closing a credit card reduces your total available credit—and raises your utilization. Keep older accounts open (even if unused) to maintain a healthy ratio and longer credit history.

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🤝 Want Help Managing Your Credit Profile?

We’ve partnered with a trusted credit repair team who can help you lower your utilization, clean up your report, and boost your score—fast.

👉 Click here to start your credit repair journey today.

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💬 Final Word

Lowering your credit utilization is one of the fastest ways to improve your score and qualify for better funding. It’s not about perfection—it’s about positioning. And every percentage point you drop moves you closer to approval.

Stay tuned for Post 5: Build Positive Credit History That Lenders Love—coming next in the series.

📞 Questions about funding? Call or text Mark directly
🌐 BusinessAndRealEstateLoans.com

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