Meaning of “proportion of balances to high credit on revolving accounts”

Dear Experian,

Can you explain one of the factors for my credit score? The listed factor is “Proportion of balances to high credit on bank revolving or all revolving accounts.”



Dear RNO,

The statement refers to your overall utilization rate and means that that the balances on your credit cards are too high.

Your utilization rate simply compares your overall balances on your credit cards to their overall credit limits. Utilization rate is the second most important factor in credit scoring only behind late payments. The utilization rate usually accounts for about 30 percent of the total credit score.

Knowing that your utilization rate is too high, you can now get a copy of your credit report and identify the accounts with balances closest to the credit limit. Reducing those balances will improve your utilization rate over time, which should result in improved credit scores.

Thanks for asking.

- The “Ask Experian” team

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