Credit Utilization: Recipe for a Perfect Balance

One of the biggest components that make up your credit score is your debt-to-credit ratio, also known as your credit utilization ratio. Credit utilization makes up 30% of your FICO credit score, which is quite a hefty percentage. There is a direct correlation between a consumer’s credit score and their credit utilization ratio. That means the lower the utilization rate, the higher their credit score. Experts suggest using no more than 20-30% of the total credit available to you and also no more than 20-30% of each individual credit line. Find out more about credit utilization and how to improve it with this fun infographic!

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