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Bank It or Plank It 2019

Well-Being @ Work Community | Last Active: May 16, 2020 | Replies (26)

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@kelly62

what is the reasoning behind only using no more than 25% of credit limit?

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Replies to "what is the reasoning behind only using no more than 25% of credit limit?"

Hi @kelly62 - Credit Utilization is the ratio of how much credit is used in comparison with how much is available. It is one of the factors used in creating a credit score. This is why a "maxed out" credit card can take a big bite out of a consumer's credit score. Leaving space on a credit card between what is owed (balance) and what could be owed (the credit limit) will help a consumer's credit score.