By Sandra Parsons
Credit utilization is a fancy name for how much of your available credit you've used. It's one criterion used by the three major credit bureaus to calculate your credit score. Why do they care? Because your credit utilization is an indicator of the extent to which you rely on credit.
How credit utilization affects your credit score
The main thing you need to know is that high credit utilization negatively impacts your credit score. If you want to improve your score or make sure it stays high, you need to keep your credit utilization down.
Certified Financial Planner Joe Hogan, Director of Financial Planning at Mariaca Wealth Management, explains:
"From the lender's perspective, someone who is taking out a high percentage of the credit offered to them is a higher risk than someone who uses lower amounts.High credit utilization can be ...
from MoneyTips https://www.moneytips.com/how-credit-utilization-impacts-your-credit-score
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