Credit Utilization Rate
What does it mean
Within a Credit Report, the Credit Utilization rate signifies the percentage of your available credit that has been utilized. For instance, if you have a credit card with a $10,000 limit and an outstanding balance of $8,000, your credit utilization rate would be 80%. A lower credit utilization rate is perceived more favorably, indicating accessible credit and adept financial management without accumulating excessive debt.
Why does it matter
Understanding the factors that influence a person's credit score is crucial, as this score has a widespread impact on various aspects of life. Sharing this knowledge with your customers can set you apart from your competitors.
Other Relevant Terms
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A bit about me
Greetings! I'm Clay Sharkey, and there is nothing I like more than assisting others in achieving their goals. I firmly believe that by enhancing a banker's understanding of their customer's' business, they can provide superior service. This superior service, in turn, leads to stronger relationships for the bank, improved performance for the businesses, and better experiences for our communities. Win-win-win.
