A high ‘debt-to-credit ratio’ or ‘utilization rate’ of your credit card which by definition is your monthly spending on credit expressed as a percentage of your total monthly credit limit, often suggests a bad credit score. For example, if you have $5000 monthly credit limit and you have spent on credit $3500 in a month, your utilization rate is 70% which is high enough to signal a bad credit score. ‘Utilization rate’ of your credit card reflects heavily on your credit score and can ascertain your ability to get a loan. Normally, it is recommended that you should try to keep your 'utilization rate' below 30% or even less than 20%, if possible. Therefore, it is clear that lower your utilization rate better your credit score will be. You can, therefore, basically improve your credit score either by getting a credit limit increase or by lowering your debt.
by Davinagirl3 7 years ago
My husband and I are looking to buy a house in the upcoming year. We have run into some trouble looking for a lender because our credit is, for lack of a better term, crap! I am looking for ideas on how to raise our scores. We pay our bills on time, so that isn't the...
by JaneKnowsbest 6 years ago
Why is a credit score a factor in things such as price for auto insurance or employment?
by Karina S. 7 years ago
Do you know how to improve your credit score?
by CWanamaker 5 years ago
What are some tips for improving your credit score when no one will issue you a credit card or loan?
by tanakasan 8 years ago
Should you be mad at your significant other for lying about their credit score?Lets say you want to buy a house together; they say their score is 720, but when you ask for proof, their credit report reads 509.
by Chupp22 8 years ago
Does any one know a site I can visit to check my credit score for free?
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