Companies use several factors to calculate your credit scores. One factor they look at is how much credit you are using compared to how much you have available. In the case of a credit card, they look at the balance you owe compared to your available credit.
See Also
How to Calculate Debt-to-Income Ratio | ChaseDebt-to-Income (DTI) Ratio: What's Good and How To Calculate ItWhat Is a Good Debt-to-Income Ratio? | LendingTreeCalculate Your Debt-to-Income Ratio | Wells FargoConsistently paying off your credit card on time every month is one step toward improving your credit scores. However, credit scores are calculated at different times, so if your score is calculated on a day you have a high balance, this could affect your score even if you pay off the balance in full the next day.
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