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This article was written by Alexandria White and Anna Height with the description that it comes form the CNBC editorial board. It says, "Editorial Note: Opinions, analyses, reviews or recommendations expressed in this article are those of the CNBC Select editorial staff’s alone, and have not been reviewed, approved or otherwise endorsed by any third party."

In it, they write an incorrect item to raise a credit score and give incorrect advice. They write:


Pay attention to your credit utilization rate

Your credit utilization rate (CUR) is your total credit card balance divided by your total available credit. For instance, the average American has a credit limit of $22,589 on four cards and a $6,028 balance, according to Experian. That results in a CUR of about 27%. Experts typically recommend keeping your total CUR below 30%.

If your CUR is above 30% and you have no problem paying your bills on time and in full, you can call your card issuer and ask for a credit increase. If you’re struggling to pay off your bills and you have a high CUR, it’s smarter to figure out some areas where you can cut back your spending.

They claim experts state to keep the credit utilization ratio no more than 30%. This is from experts that have not researched FICO® and it is incorrect. Actually, it is best to pay off many of the credit card accounts to improve FICO scores. If you borrow on certain credit cards, keep the balances below 5% of the credit limit to get the most points higher for FICO scores. 

The 30% utilization ratio comes from following the Vantage credit score -- which is not used by lenders for loan approval. The authors of this article are comparing apples to oranges and it does not work. Since lenders use FICO scores, you must do what FICO wants to get your scores higher. 


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