To keep your financial health at optimal levels, you should strive to keep your credit use below 30% of your total available credit. It is commonly referred to as your credit utilization rate. What does that mean? How do you calculate your utilization rate? You take the total amount of your credit card debts and divide it by the total amount of available credit.
An example would be if you have a credit card with a $2,000 credit limit, you shouldn't carry more than $600 in debt.
Of course, I don't believe that you should be carrying any debt gong month to month and should pay it off every month. However, if you're in the process of working on paying down debt, this can be your first goal. #Finhacks #creditutilization #creditscore
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