How Your Credit Utilization Ratio Works

Lucas and Luna break down the single most important factor in your credit score after payment history: your credit utilization ratio. Using real numbers, Lucas explains why using 30% of your available credit isn't a magic target—and why 7% is closer to what top scorers actually do. They walk through the math of statement balances versus reported balances, what happens when you pay down before the statement cuts, and the strange case of people whose scores dropped after paying off a card completely. Luna brings a listener question about how to handle utilization when you're applying for a mortgage. This episode gives you one concrete number to check on your next statement and explains why the FICO algorithm cares more about your total used credit than any single card balance. No fluff, just the math behind the score. #CreditUtilizationRatio #FICOScore #CreditScore #CreditReport #BorrowerHealth #CreditCardDebt #PersonalFinance #Finance #FexingoBusiness #BusinessPodcast #CreditScorePodcast #DebtManagement #MortgageTips #StatementBalance #CreditLimit #ScoreOptimization #LucasAndLuna #Fexingo Keep every episode free: buymeacoffee.com/fexingo