If you think having high credit limits on your credit cards, means you must have a good credit score, think again.

Here’s how to use your available credit to increase your credit score.

Think of your available credit as a big empty swimming pool.  The amount of that credit you actually use is like the water.  If you just use a little, creditors figure you’re nice and safe in there and nobody gets hurt.

But if you use most or all of of your credit limit, creditors figure you could get in trouble, like an inexperienced swimmer in very deep water.

For the best credit score, you want to use less than half of your available credit.  Using just 30% is even better.  It shows you’re being a responsible person.

So the next time you need a loan and a creditor dives into your credit report, the water will be fine.

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