Borrowing from the bank utilization try a ratio that presents how much cash of readily available borrowing you are having fun with
Instance, imagine if you have got a charge card which have a maximum maximum out of $five-hundred. At the conclusion of this new times, you have got racked up personal credit card debt totaling $one hundred. That makes your own borrowing from the bank utilization 20%. Try keeping your own usage less than 31% in order to maintain a good credit score.
Your credit report is where much time you have been dealing with financial obligation. Continue Reading