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Utilization has the lowest impact on your score. By your reasoning, homeowners with a mortgage should have a terrible credit score, when in fact it’s usually the opposite.


Utilization is 30% of your credit score making the 2nd largest single factor, behind only payment history (35%). That said utilization only counts revolving credit sources. That means installment loans like home and auto loans are not part of that particular factor.


Ah my mistake, I didn’t realize they don’t count installment loans as part of utilization.




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