Credit Tip #2 – Keep Your Credit Utilization Low

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Credit Tip #2 – Keep Your Credit Utilization Low

[ultimate_heading main_heading=”Keep Your Credit Utilization Rate” main_heading_color=”#1e73be” sub_heading_color=”#1e73be” spacer=”line_with_icon” spacer_position=”middle” line_style=”dashed” line_height=”2″ line_color=”#dd3333″ icon_type=”custom” icon_img=”6340″ img_width=”64″ line_width=”110″ main_heading_font_family=”font_family:Raleway|font_call:Raleway|variant:600″ main_heading_style=”font-weight:600;” sub_heading_font_family=”font_family:Raleway|font_call:Raleway|variant:600″ sub_heading_style=”font-weight:600;”]As Low As Possible (or under 25% to 30%)[/ultimate_heading]

Do not let your balances on revolving credit accounts exceed 30% of your credit limit. This will show creditors that you can use credit responsibly without overextending yourself. It is actually more preferable to keep the balances under 25% ( the lower your percentage from 25% the better)

For example, if you have a credit card with a $1000 limit, keep you balance under the $300 mark. Please keep in mind that the 30% of the credit limit balance is the maximum you should carry. It is actually recommended to have a utilization rate between 1-10%.

Do not get confused when you see terms such as “balance  to limit ration” as it is the same as credit utilization ratio

By | 2015-10-08T13:56:18+00:00 March 30th, 2015|credit tips|0 Comments

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