Improve Your Credit Score: Credit Utilization Rate

Credit utilization rate (or debt to credit ratio) is how much you owe as a percentage of your total credit line. For example, if you credit card’s credit limit is $10,000 and you owe $2,500 — your credit utilization rate is 25%.

A good way to improve your credit score is to pay down your credit card debt. This will improve your credit utilization rate. Since your credit utilization rate accounts for 30% of you credit score, it will slowly rise as a result.

Besides, paying down your debt is great for your finances too!

Related Articles From Other Bloggers

• Becoming an Internet Entrepreneur - Tips and Tricks -To get you fast-tracked, we have included a vast selection of tips and tricks to make your online business a success that it deserves to be.1) First of all, choose a domain name that is somehow related to the business you are in. For example, if you are looking......
• Coupon Tips and Tricks -I think everyone who uses coupons likes to develop their own coupon tips and tricks. You know what I mean, right? These are the little things you do to get the most out of your coupons. There’s no such thing a too much of a good thing when it comes......
• Compounding and the Rule of 72 -The reason why it is so important for you to start saving early is the magic behind the concept of compounding and the rule of 72. People who wait until they are later to begin saving are going to have to save much more and much more quickly in order......
• linklings, shock the monkey edition -photo credit: mac_filko I recently saw "Growing Up On Tour", a documentary about Peter Gabriel. I'm no huge fan of Gabriel - like everyone else who grew up in the 80s I knew his big hits - Sledgehammer, Red Rain, In Your Eyes and so on. But I like......
• 4 Tips For Applying For a Mortgage -My wife and I are currently in the process of selling our home, and looking to upgrade our living space. The house we live in now is getting smaller everyday. Personally, I blame the kids - they just keep growing!? I tell my wife that's because we keep feeding......

Get Free Email Updates
Like this article? Enter your email address and click "Subscribe" to get the latest articles sent to your email for free. Your email will only be used for this daily update and you can unsubscribe anytime.

* Subscribe to our feed now, it's free!

Related Tags
Credit Score, Credit Utilization Rate, FICO

• Banking: Money Market Rates, Small Business Loans, VA Mortgage,
• Credit Cards: Best Credit Cards, Best Business Credit Cards, Best Student Credit Cards.
• Credit Score: Build Business Credit, Credit Score, Credit Repair.

No comments yet.

Please share your comment: