• How Much of The Credit Card Balance Should I Use?

  • Aug 3 2022
  • Length: 1 min
  • Podcast

How Much of The Credit Card Balance Should I Use?

Listen for free

View show details

  • Summary

  • Your credit utilization rate, also known as your debt-to-credit ratio, is an important factor that helps determine your credit score.Read more about Credit card balance utilization at https://nayanmahorr.blogspot.com/2022/08/how-much-of-the-credit-card-balance-should-i-use.html

    Shown as a percentage, it represents how much credit you use compared to how much you have available to you.

    Before approving your credit application, lenders and creditors also look at your utilization rate to determine how much of a risk you are. A high utilization indicates that you could be a subprime borrower who may have trouble paying back a loan or credit card bill because you already have a lot of debt, whereas a low utilization rate illustrates you’re able to manage credit responsibly.


    No matter where your credit utilization rate stacks up against the average, know that the magic to a healthy utilization ratio is maintaining a low credit card balance and a high credit limit. The closer you can get to having a single-digit utilization, the better. Prioritize paying down your balances and once you’ve made a dent in your debt, you could consider asking for a credit limit increase.
    Show More Show Less
Show More Show Less

What listeners say about How Much of The Credit Card Balance Should I Use?

Average Customer Ratings

Reviews - Please select the tabs below to change the source of reviews.

Audible.com.au reviews

Amazon Reviews
No Reviews are Available
In the spirit of reconciliation, Audible acknowledges the Traditional Custodians of country throughout Australia and their connections to land, sea and community. We pay our respect to their elders past and present and extend that respect to all Aboriginal and Torres Strait Islander peoples today.