You’re probably aware that you have a credit score and that those three digits can significantly impact your financial life. You may also know that your credit score gets calculated based on multiple data points from your credit report.
However, you may not be familiar with the term “credit utilization ratio,” which has the second most significant impact on your score (payment history has the most). We’ll define the phrase, explain how it affects your credit score, show you how to calculate it, and share strategies to improve it. That way, you can build and maintain a strong credit profile—and reap the benefits for years to come.
