Posted Wednesday, Apr 02, 2025
Want a simple, effective way to raise your credit score? One of the biggest impact factors is your credit utilization — or how much of your available credit you’re using. At Southside Auto Sales, we’ve helped many customers improve their scores just by keeping this one number in check.
Credit utilization is the percentage of your credit limit that you’re currently using. For example:
If your credit card has a $1,000 limit
And your balance is $500
Your utilization is 50%
Your credit utilization makes up about 30% of your credit score — it’s one of the most important factors after payment history.
Here’s the rule of thumb:
Keep it under 30% of your total credit limit
Under 10% is even better
Over 50% can hurt your score and your chances of approval
If you can't pay it off fully, try to make an extra payment before your statement closes — that’s what gets reported to the credit bureaus.
Also, don’t close unused cards unless you have to — keeping them open increases your total available credit, which helps your utilization ratio.
Lenders want to see that you’re not maxed out and that you manage credit responsibly. Keeping your balances low can help you:
Qualify for better interest rates
Get approved for auto loans faster
Appear less risky to lenders
Increase your total score faster over time
We’re here to help with credit tips that make a real difference — not just in getting approved, but in building a stronger financial future.
Need a vehicle now? Don’t wait until your score is perfect — we work with all credit types and specialize in second-chance financing that reports to the major bureaus.
Southside Auto Sales
870-569-4935
1273 Batesville Blvd, Southside, AR