Respuesta :
Answer:
30%
Explanation:
Credit utilization can be regarded as the percentage of the total credit that individual is utilizing. It's financially advisable to keep the credit utilization ratio in order to have a good credit score.
To calculate credit utilization rate;
✓ one need to know the information about one credit account.
/✓Then divide the total balance by the total credit limit
✓then multiply by 100
For instance if the total balance is $5000 and total credit limit is $25000 then the credit utilization ratio is ($5000/$25000)×100%
= 20%
Whenever the credit utilization ratio is
higher than 30% it will bring about the decrease of credit score, as a result of this , the lender can be worried because he/she may think the ratio is overextended, and paying back new debt might not be easy.
Therefore, with general rule of thumb is to keep your credit utilization rate at 30% or lower. your approximate credit utilization rate for this current billing cycle is 30%
Answer- 30 percent
Explanation: In A general rule of thumb is to keep credit utilization below 30%, But when we study in FICO found that “high-achievers” consumers with credit scores 750 and above also use less than 10% of their total available credit limit. You can aim to keep your credit utilization rate as low as possible in order and avoid hurting your credit score, but not compulsory as low as 0%.
- Let take the example and calculate the credit utilization rate
- 3 cards are card (A), card (B), and card (C)
- Your credit utilization is influenced by three main factors are:
- First, you have to the opening or closing of the account.
- Then second-factor balance and the credit limit on your accounts.
- Then the last factor multiplies by 100.
Card A : $250 , $2,000
Card B : $750 , $6,000
Card C : $3,000 , $12,000
Total : $4,000, $20,000
- If divide your total balance ($4,000) by your total credit limit ($20,000). Then, multiply by 100 to get the percentage. To get find your utilization rate,
answer will be : $4,000 / $20,000 = 0.2 x 100 = 20%
- Therefore, the general rule of thumb is to keep your credit utilization rate at 30% or lower. your approximate credit utilization rate for this current billing cycle is 30%
Learn more about the general rule of thumb
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