2. Use of available credit
This is the second most important factor. It is also called “credit utilization.” To figure out your available credit, add up the credit limits for all your credit products, such as credit cards, lines of credit and other loans.
What counts toward your credit score is how much of your available credit you actually use, not your credit limits by themselves.
When you use a large percentage of your available credit, lenders see you as a greater risk, even if you pay your balance in full by the due date.