Keep Your Credit Utilization Rate

As Low As Possible (or under 25% to 30%)

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