 TITLE: Why Did My Credit Score Improve? CONTENT: Your Credit Utilization Ratio Decreased\n---------------------------------------\nYour credit utilization ratio is the amount of revolving credit you're currently using compared with your total credit limit. Scoring models calculate credit utilization based on your individual credit card account balances as well as your total utilization across all credit card accounts. Credit utilization is a major component of the \"amounts owed\" factor, which makes up 30% of your FICO® Score☉ .\nWhen you pay off a credit card balance, your utilization on that card drops to zero—and your overall utilization drops too. That generally has a positive effect on scores (though showing you can manage credit cards on a regular basis means that a low overall ratio is better than zero). Since account information is updated with the credit bureaus after the end of a billing cycle, you may not see a score change until 30 to 45 days have passed after reducing your credit utilization.\nKeeping your credit utilization below 30% of your available credit can help you improve your scores, and the lower, the better. Paying down your balances is the most straightforward way to reduce your credit utilization, but you can also request that a credit card issuer increase your credit limit. An increased limit can help you reduce your utilization even if you maintain the same credit usage. However, you should resist the temptation to use that increased limit to add to your debt. This could leave your utilization ratio worse off than before and result in more interest charges. After requesting a credit limit increase, you might see a brief drop in your score if the issuer had to make a hard inquiry in order to review your credit report as part of its decision-making process. END