In 2019, a representative of Fair Isaac, the FICO credit score company stated, “There is nothing significant about 30 percent revolving utilization.”
However, Experian, one of the three main consumer reporting agencies in the U.S., states, “In a FICO Score or score by VantageScore, it is commonly recommended to keep your total credit utilization rate below 30%.”
Another such agency, Transunion, states, “Paying off outstanding debts to keep your credit utilization below 30 percent may positively amend your credit score.”
And another of the three, Equifax, states, “Lenders and creditors generally like to see a low debt to credit ratio – below 30 percent.”
Despite the clear statement of Fair Isaac, 30 keeps coming up. What is behind that?