The Credit Scoring Site A bleak account 

Equifax on 30% credit score utilization ratio level

With no substantiation, the credit bureau states that a credit utilization ratio of 30% is some kind of bright line

| By Greg Fisher

As late as 2016, with regard to a credit utilization ratio level, a page in the internet domain equifax.com stated, "The optimal credit ratio is approximately 35 percent."

Today an Equifax page states: "Lenders usually like to see a credit utilization rate below 30 percent. A rate higher than 30 percent may negatively affect your credit scores." #Myth4

Another, again, uses 30 percent as a bright line: "A credit utilization rate of 30% or less can help improve your credit scores."

However, according to Fair Isaac, the Fico credit score company, "There is nothing significant about 30 percent revolving utilization."

The Equifax statements above are institutional in nature–no author is named. However, yet another Equifax article includes the name of its writer. The item states: "Payment history and paying on time every month will help improve a credit score over time. It’s also recommended that potential borrowers keep a 30% (or less) utilization on existing credit card/charge accounts. This shows lenders that they can pay off debts."

That item is titled "Help Borrowers Move Through the Mortgage Process" and is misleading. It states, "Ranging from 300 to 850, the credit score is a numerical estimate of how likely a person is to repay a loan."

There is no 850 credit score in mortgage lending. The highest Equifax-based Fico credit score in mortgage loan underwriting is 818.




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