CALCULATING YOUR CREDIT UTILIZATION RATIO? ??

CALCULATING YOUR CREDIT UTILIZATION RATIO? ??

Your credit utilization ratio is the amount of revolving credit you're currently using divided by the total amount of revolving credit you have available.
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In other words, it's how much you currently owe divided by your credit limit. ?
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Credit scoring models often consider your credit utilization rate when calculating a credit score for you. ???
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A low credit utilization rate shows you're using less of your available credit.
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Credit scoring models generally interpret this as a sign that you're doing a good job managing credit by not overspending, and keeping your spending in check can help you reach higher credit scores. ???
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Your credit utilization rate is just one of many factors that can affect your credit scores. It's important to understand how it works, and how you can manage credit utilization to make it work for you. ?
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Questions about credit? We’d love to help. Drop me a comment below or shoot me a DM. ??
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