| By Greg Fisher
From: Greg Fisher [mailto:email@example.com]
Sent: Tuesday, April 26, 2016 11:08 AM
To: Anat Bracha, Federal Reserve
Cc: Cäzilia Loibl, Ohio State University
Subject: credit score, percent, paper cited
Federal Reserve Bank of Boston
See this message and your response at http://www.creditscoring.com/interaction/2016/04/26-bracha.html [this page].
You wrote: "Likewise, a better payment history, fewer credit lines, and a lower percentage of credit use generally yield higher credit scores. A lower percentage of credit use (best is below 30 percent) increases a credit score, since it indicates that the individual is not financially constrained."
Bracha, A., & Meier, S. (2014, November). Nudging Credit Scores in the Field: The Effect of Text Reminders on Creditworthiness in the United States - Federal Reserve Bank of Boston (Working Paper No. 15-2). Retrieved April 26, 2016, from http://www.bostonfed.org/economic/wp/wp2015/wp1502.htm
What is so special about 30 percent?