{"id":4572,"date":"2023-10-11T15:35:16","date_gmt":"2023-10-11T15:35:16","guid":{"rendered":"https:\/\/mer.tours\/credit-utilization-ratio-what-it-is-and-how-it-affects-your-credit-score\/"},"modified":"2023-10-11T15:35:16","modified_gmt":"2023-10-11T15:35:16","slug":"credit-utilization-ratio-what-it-is-and-how-it-affects-your-credit-score","status":"publish","type":"post","link":"https:\/\/travelaffiliatewebsite.com\/mer\/credit-utilization-ratio-what-it-is-and-how-it-affects-your-credit-score\/","title":{"rendered":"Credit utilization ratio: What it is and how it affects your credit score"},"content":{"rendered":"

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When it comes to personal finance (including how to get the best credit cards<\/a>), your credit score<\/a> plays a large role. Creditors use it as a barometer for your trustworthiness as a borrower.<\/p>\n

One of the main factors in determining your score<\/a> is credit utilization, a term not everyone is familiar with. Let’s look at your credit utilization ratio and how you can maintain a low ratio to improve your credit score<\/a>.<\/p>\n

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What is credit utilization?<\/h2>\n

The term “credit utilization ratio” describes the relationship between your balances and total available credit across revolving accounts (such as credit cards). It’s the percentage of your credit limits that you are using, as reported by the three credit bureaus<\/a>. Credit utilization is sometimes known as your “balance-to-limit ratio” as well as your “debt-to-credit ratio” \u2014 but can also appear as “amounts owed.”<\/p>\n

You can calculate your credit utilization with this simple formula:<\/p>\n