What Is Credit Utilization Rate? (And Why It Matters)

Of all the factors that go into a credit score, credit utilization rate is the one I find most buyers fixating on β€” and for good reason. It’s also one of the few you can actually change in a matter of weeks rather than years. For the dollar-amount version of the question, I wrote up how much credit card debt is too much.

credit utilization rate
Credit Utilization Rate = Total Debt / Total Credit

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