Credit Utilization Ratio - How to Discuss
Credit Utilization Ratio What Is Credit Utilization Ratio and Why Is It Important? Your Credit Card Usage Is the Available Credit You Use on Your Credit Cards...
Credit utilization ratio
What is credit utilization ratio and why is it important? Your credit card usage is the available credit you use on your credit cards. Your credit utilization ratio is your reported balance divided by your credit limit. Lenders may be concerned about using your credit card because they can provide information about your financial capabilities and how you handle your money.
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How is my credit utilization ratio calculated?
Credit usage is calculated by dividing the credit card balance by the credit limit. For example, the result is a decimal number. Multiply that number by 100 (or move the decimal two places to the right) to get the percentage. The result is the utilization rate of your loan.
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