Present financial liability – up to 30%
All of us have a credit limit cap, beyond which we may become unable to borrow more. Lenders care about this and use your credit utilization ratio to determine this.
With this metric they consider the credit limit you can take advantage of (based on your total assets) and the amount of that you have used up.
You may be surprised to know that zero is not a positive number. Ideally, it is good for you to have some credit associated with your name, spread across a balanced list of loan type. (Mortgage payments, credit cards, personal loans, etc.)
Finally, they will also consider how much is owed against the original credit balance to determine your final score.
For instance, if you took out a $10,000 personal loan a few months ago and have already paid up 80% of it, this will work positively on your credit report and give you a credit boost.