Home › Questions › Credit Score › Why does higher credit utilization hurt your credit score?
- This topic has 1 reply, 1 voice, and was last updated 8 months, 1 week ago by
Kikoff.
Viewing 2 posts - 1 through 2 (of 2 total)
-
AuthorPosts
-
July 10, 2024 at 10:46 pm #459
Kikoff
KeymasterJuly 10, 2024 at 10:50 pm #467Kikoff
KeymasterCredit utilization is the ratio of your current credit card balances to your credit limits, and it plays a significant role in your credit score. High credit utilization suggests to lenders that you may be overextended financially, making you a higher risk for defaulting on your debts. Keeping your credit utilization below 30% of your total available credit is generally recommended to maintain a healthy credit score.
-
AuthorPosts
Viewing 2 posts - 1 through 2 (of 2 total)
- You must be logged in to reply to this topic.