How Tradelines Lower Your Credit Utilization

Credit utilization, the share of your available credit you’re using, is one of the biggest factors in your credit score. It’s also one of the areas where a tradeline can help most.

How utilization is calculated

Add up your credit card balances and divide by your total credit limits.

Example: you have $3,000 in balances on cards with $5,000 in total limits. That’s 60% utilization, which is high enough to hold your score back.

What a tradeline changes

Now add an authorized user tradeline with a $15,000 limit and a $500 balance:

• Total balances: $3,500
• Total limits: $20,000
• New utilization: 17.5%

Same spending on your own cards, much lower overall utilization.

Where people aim

• Under 30%: the common guideline.
• Under 10%: typical of the highest scores.

Other ways to lower utilization

1. Pay down balances, starting with cards closest to their limits.
2. Pay before your statement closing date.
3. Ask for credit limit increases.
4. Keep paid-off cards open.

A tradeline doesn’t replace paying down debt, but it can help while you do. Browse available tradelines.