Intuit Credit Karma

Credit utilization — how much of your available credit you’re using — is one of the biggest factors in your credit score. This video explains what it is, what’s considered a good ratio, and how to keep it in a healthy range.

Questions answered in this video: • What is credit utilization? • What’s a good credit utilization ratio? • How does credit utilization affect my credit score?

Key takeaways: • Credit utilization measures how much of your total available credit you’re currently using • It’s the second most important credit score factor after payment history • A utilization rate under 30% is generally recommended; lower is better • You can lower your utilization by paying down balances, requesting credit limit increases, or spreading purchases across cards • Utilization is calculated per card and across all cards — both matter

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Learn more — check out this article: Credit Utilization: https://www.creditkarma.com/credit-cards/i/credit-utilization

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