A credit utilization ratio is used by credit reporting agencies to calculate a borrower’s credit score. To calculate your credit utilization ratio, divide your debt by the total amount of credit available to you and multiply this number by 100. A credit ratio should not exceed 30% of your overall credit limit. It is necessary to always keep it below 30% for a good credit score. If it exceeds more than 30%, it will affect your credit score.



If your credit utilization is high, your… Continue