• credit utilization and why it matters

    What is Credit Utilization and Why It Matters

    Credit utilization comes down to how much of your credit limit you are using. The higher your credit balance is to your credit limit, the lower your credit score. Lower credit utilization means higher credit scores. So when it comes to improving your credit score, it’s pretty important. Why does credit utilization matter? Did you know that amounts owed on accounts contribute 30% towards your credit score, right behind payment history? That means that your high balances are hurting your credit score. And a lower credit score typically means higher interest rates and other fees. When it comes to your credit balances, credit bureaus compile the information onto your credit…