Credit Card Utilization Ratio. http://www.businesscreditblogger.com/2016/12/01/credit-card-utilization-ratios/ What should your credit card utilization ratio be? In this video we will cover the two types of credit card utilization ratios and how it impacts your ability to acquire additional credit both as an individual and as a business owner.
Now when it comes to credit scores like FICO®, credit utilization ratios are looked at in two ways. First, there is the per credit card utilization ratio which determines how much of each of your card’s credit limits you are using.
Secondly, there is your overall credit card utilization ratio. This ratio factors in all of your credit cards and their credit limits into account.
The important thing to remember is banks and lenders don't want to see you maxed out or close to the card's limits as this shows a potential for financial stress. The lower the utilization ratio the better it is for both your credit scores and credit profile.
For more details on credit card utilization ratios check out the following sites:
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