If you’re trying to improve your credit score and also just get a better grasp on responsible credit management, then your credit utilization ratio (or credit usage) is a good place to start. Just as it sounds, this ratio shows how much of your available credit you are using at any given time. Learn the benefits of minimizing credit usage.
How to Calculate Your Credit Utilization Ratio
The credit utilization ratio is also a piece of information that credit reporting agencies will use to determine your credit score. So this is important to keep track of. Check out this handy video to find out how to calculate your credit usage…
Good Credit Management & Minimizing Credit Usage
A low credit utilization ratio illustrates good credit management by a consumer. Anything below 50% at any given time is considered healthy, but the lower the better. Minimizing credit usage will reflect well in your credit report.
Looking for more help with credit and debt management? Contact the professional counselors at American Consumer Credit Counseling. Call 800-769-3571 to speak with a counselor today! Or visit ConsumerCredit.com.