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The Credit Utilization

Perhaps if you think, only by paying your bills on time you could boost your credit score greatly then, you are certainly uninformed. As stated above, there are a number of factors that contribute to the credit score calculation, of which this credit utilization is a significant one that denotes, how much of the allocated credit limit you have consumed that shows your spending habit, implicitly. Yes, although you are authorized to utilize up to your proposed credit limit, in order to obtain a good credit score, you should always maintain less than 30% of credit utilization factor, anytime indicating you are a reasonable spender, who would also be able to pay your bills on time suitably. Calculating this factor is also easier, where, by dividing the total sum of your individual credit usage by the total credit limit allowed will produce the required value that can be converted into the percentage by multiplying with the 100. Simple, middle-school-math, isn't it? But, this math decides your high-level financial expectations and hence, utilize it then and there to fine-tune your credit score perfectly.

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