1 comment

  • Official comment
    Stilt Team (Edited )

    According to conventional wisdom your credit utilization should be below 30%. There is less clarity on how much does a high credit utilization hurts and for what period of time. Also, your overall credit limit and credit utilization matter rather than per credit card. You can choose to spend less on the card with less points and more on the card with higher rewards. That is totally fine.

    Credit Utilization is only a component of credit score. The recommended limit of 30% is not a hard rule - this is just a guideline. Still, you should try to keep it low.

    There are 5 major components of a credit score.

    1. Payment History - Based on a borrower’s payment history. This is the most important factor. Making regular payments on previous credit is very important. Try not to be late on your credit card and other credit payments.
    2. Credit Utilization - Make sure you don’t max out credit cards. It is important to maintain a good utilization rate (< 30% is recommended).
    3. Length of Credit History - It is important to show that you can consistently use credit responsibly that’s why you length of your oldest credit account is also matters.
    4. Credit Mix - Having different accounts and types credit accounts can show that you can manage different types of debts.
    5. New Credit - Low number of recent credit inquiries are important to show that you are not looking for credit all the time.

    About Stilt:

    Stilt provides loans to international students and working professionals in the U.S. (F-1, OPT, H-1B, O-1, L-1, TN visa holders) at rates lower than any other lender. Stilt is committed to helping immigrants build a better financial future.

    We take a holistic underwriting approach to determine your interest rates and make sure you get the lowest rate possible.

    Learn more about us on Wikipedia or visit us at If you have any questions, send us an email at

    Comment actions Permalink

Please sign in to leave a comment.