The amount of credit you have used compared to the maximum amount of credit available is called credit utilization. For example, a credit card with a maximum limit of $5000 with a $4500 balance will hurt your score more than the same card with a $2000 balance. When you are applying for a mortgage it may be smart to pay down your credit cards to less than half of their maximum limit. This helps your score because it shows that you use credit sparingly and are therefore less of a risk to the lender.

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