 TITLE: How Much Credit Should I Use? CONTENT: What Is Credit Utilization?\n---------------------------\nOne of the first things many of us learn about credit scores is that maxing out a credit card—having a balance equal to or greater than the card's borrowing limit—is bad news for your score. But those with the highest credit scores often have (and use) multiple credit cards every month. So how much usage is too much?\nThe key to knowing how much credit to use begins with understanding your credit utilization ratio. This ratio measures the percentage of your available credit you're using at a given time. To determine your credit utilization ratio, divide your current balance by your credit limit. So, for example, if you have a credit card with a borrowing limit of $6,500 and your balance is $1,500, the utilization ratio for that card is $1,500 divided by $6,500, or 0.23 (23%).\nCredit scoring models such as those maintained by FICO and VantageScore® factor the utilization ratios for each of your credit cards into their calculations when determining your credit score. They also factor in your total utilization ratio: the sum of all your credit card balances divided by the sum of all your credit limits. END