July 3, 2022 | By Greg Fisher

See false statements below.

This page documents and records a massive amount of misinformation about credit scores.

Credit Score Myth 7 is the false information that the weight of a credit utilization ratio is 30% in Fico credit scores. That is impossible given that there are other factors in the same category weighted at 30%. Who spreads the myth is surprising and troubling.

Fico credit score company Fair Isaac breaks down scores into 5 categories. One such category is named Amounts Owed and makes up 30% of the scores. Within that category—weighted at 30%—are 5 items:

• The amount owed on all accounts
• The amount owed on different types of accounts
• How many accounts have balances
• Credit utilization ratio on revolving accounts
• How much of the installment loan amounts is still owed, compared with the original loan amount

A widespread error is to overstate the weight of a credit utilization ratio at 30%.

Obviously, if such a ratio determined 30% of a score, that would leave no room in the 30% category for the other 4 factors. The ratio alone cannot make up 30 percent of a score. That is impossible.

The statements below are not true.

1. According to myFICO, your credit utilization ratio accounts for 30% of your score.
   
   —rockethomes.com
2. According to the FICO scoring model, your credit utilization ratio accounts for 30% of your credit score.
   
   —creditcards.com
3. And because your credit utilization ratio accounts for 30% of your credit score, an improvement to this number usually means that you’ve made an improvement to your credit score.
   
   —carolthompsonrealty.com
4. As you can see, your credit utilization, or the percentage of open credit that you’re using, accounts for 30% of your credit score.
   
   —thepennyhoarder.com
5. As your credit utilization ratio makes up 30% of your credit score, so it’s not a small thing to overlook.
   
   —intuit.com
6. But borrowers with a high DTI ratio may have a high credit utilization ratio -- and that accounts for 30 percent of your credit score.
   
   —firstokfcu.org
7. But it’s important to remember that your credit utilization ratio accounts for 30% of your credit score.
   
   —121fcu.org
8. But one of the least understood factors—credit utilization ratio—is also one of the most important: it accounts for 30 percent of your score.
   
   —chase.com
9. Credit utilization ratio makes up 30% of your score.
   
   —unitedfcu.com
10. 'Credit utilization' refers to the amount of credit available to you versus how much of that credit you’re currently using. This statistic makes up about 30% of your overall credit score.
    
    —communityfirstfl.org
11. Debt-to-limit ratio makes up 30% of your FICO Score.
    
    —Fair Isaac (FICO)
12. How much you owe compared with your credit limits – your credit utilization ratio – accounts for 30% of your FICO score.
    
    —C. Bond, usnews.com
13. How much you owe compared with your credit limits -- your credit utilization ratio -- accounts for 30% of your FICO score.
    
    —N. Clements, C. Bond, yahoo.com
14. How much you owe in relation to your available credit limits — your credit utilization ratio — makes up 30% of your FICO score.
    
    —creditkarma.com
15. If you carry high balances on your cards, you are likely to drive up your credit utilization ratio—the amount of available credit you use, which accounts for 30 percent of your credit score.
    
    —consumerreports.org
16. Lenders like to see credit utilization under 30%—under 10% is even better. This ratio accounts for 30% of your FICO Score.
    
    —Experian
17. Life is slightly more complicated when it comes to your so-called credit utilization ratio, which comprises 30% of your FICO credit score.
    
    —nytimes.com
18. Lowering your overall credit limit without reducing your balances will increase your credit utilization ratio, which accounts for 30% of your FICO score.
    
    —riograndecu.org
19. Lowering your overall credit limit without reducing your balances will increase your credit utilization ratio, which accounts for 30% of your FICO score.
    
    —wpcu.coop
20. One major factor in your credit score is known as your credit utilization ratio. Under the FICO credit scoring system, this accounts for 30% of your credit score.
    
    —self.inc
21. Remember, your credit utilization ratio accounts for 30% of your credit score.
    
    —fscu.com
22. Since the 'credit utilization ratio' makes up 30% of your FICO score, try to limit your card use to no more than 30% of available credit at any given time.
    
    —self.inc
23. That’s because 'amounts owed,' also known as your credit utilization ratio, makes up 30% of your FICO score.
    
    —huffpost.com
24. That’s because doing so increases your 'credit utilization ratio' — or the percentage of available credit you’re using — a number that comprises 30% of your FICO scores.
    
    —chime.com
25. That’s because this factor, known as your 'credit utilization ratio,' accounts for 30% of your FICO score.
    
    —Nerdwallet, freep.com
26. That’s because this factor, known as your 'credit utilization ratio,' accounts for 30% of your FICO score.
    
    —Nerdwallet, usatoday.com
27. That’s because it can increase your credit utilization ratio, which accounts for 30% of your FICO score.
    
    —forbes.com
28. That's called your credit utilization ratio, and it accounts for 30% of your credit score.
    
    —Motley Fool, foxbusiness.com
29. The credit utilization ratio comprises 30% of FICO credit scores.
    
    —rutgers.edu
30. The credit utilization ratio makes up 30% of your credit score.
    
    —forbes.com
    
    

    

    
    
    
31. The lower your ratio, the better. It accounts for 30% of your FICO score.
    
    —time.com
32. Therefore, experts say the credit utilization ratio comprises 30% of your FICO score since it only applies to revolving lines of credit and is defined as the ratio of credit you’re using to the total amount of credit you’ve been extended.
    
    —cnbc.com
33. This is known as your credit utilization ratio, and it accounts for 30% of your FICO Score.
    
    —fool.com
34. This ratio accounts for 30% of your credit score.
    
    —kiplinger.com
35. This ratio—your credit utilization ratio (CUR), aka your credit utilization rate—is important because it determines up to 30% of your credit score.
    
    —creditonebank.com
36. To help increase your score even more, pay more than the minimum payment due to help you drive down your credit utilization ratio, which accounts for 30% of your credit score.
    
    —citi.com
37. Under the FICO scoring model, your credit utilization ratio makes up 30% of your credit score.
    
    —creditcards.com
38. When building your credit score with a credit card, your credit utilization ratio accounts for 30 percent of your credit score.
    
    —intuit.com
39. 'With a weighting of 30%, your credit utilization ratio is a key factor used to calculate your credit score,' said Richard Best, a credit specialist at Dontpayfull.com, a consumer discount financial spending platform.
    
    —foxbusiness.com
40. You'll want to have a low credit utilization ratio, which comprises 30% of your overall credit score.
    
    —Farnoosh Torabi
41. Your credit utilization rate accounts for 30% of your credit score.
    
    —credit.com
42. Your credit utilization ratio accounts for 30% of your credit score.
    
    —ascu.org
43. Your credit utilization ratio accounts for 30% of your credit score.
    
    —Motley Fool, jsonline.com
44. Your credit utilization ratio accounts for 30% of your credit score.
    
    —Motley Fool, knoxnews.com
45. Your credit utilization ratio accounts for 30% of your FICO credit score.
    
    —americanexpress.com
46. Your credit utilization ratio is the amount you owe across your credit cards (and other revolving credit lines) compared to your total available credit, expressed as a percentage. In the FICO scoring model, this accounts for 30 percent of your overall credit score.
    
    —bankrate.com
47. Your credit utilization ratio is the second most important factor in calculating your FICO score, the credit score lenders use more than any other. It accounts for 30 percent of your score.
    
    —US NEWS, wtop.com
48. Your credit utilization ratio makes up 30% of a FICO score.
    
    —self.inc
49. Your credit utilization ratio makes up 30% of your credit score.
    
    —lakeviewlawgroup.com
50. Your credit utilization ratio makes up 30% of your credit score.
    
    —csmonitor.com
51. Your credit utilization ratio makes up 30% of your FICO score.
    
    —thepointsguy.com
52. Your credit utilization ratio makes up 30% of your FICO Score.
    
    —fool.com
53. Your credit utilization ratio makes up 30% of your FICO score.
    
    —time.com
54. Your credit utilization ratio makes up 30% of your FICO score.
    
    —creditcards.com
55. Your credit utilization ratio--the amount of your debt in relation to the amount of your available credit--comprises 30% of your score, says Craig Watts, a spokesman for Fair Isaac Corporation, the company that calculates and issues the FICO credit score that most lenders use.
    
    —Wall Street Journal, Congressional Record, govinfo.gov
56. Your debt-to-credit utilization ratio — how much debt you’ve accumulated on your credit cards divided by the credit limit on the sum of your accounts — comprises 30% of your credit score.
    
    —yahoo.com
57. Your utilization rate accounts for 30 percent of your credit score.
    
    —lexingtonlaw.com

The numbered statements above are false.

Consensus does not necessarily equal truth.

Follow the activity of Myth7 using that hashtag.