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01
To fill out what is credit utilization, follow these steps:
02
Determine your total credit limit across all your credit cards.
03
Calculate your total credit card balance by adding up the outstanding balances on all your credit cards.
04
Divide your total credit card balance by your total credit limit.
05
Multiply the result by 100 to get the credit utilization percentage.
06
The final figure represents your credit utilization, which shows how much of your available credit you are using.

Who needs what is credit utilization?

01
Understanding what is credit utilization is important for anyone who has credit cards or uses other forms of credit.
02
People who are trying to maintain a good credit score need to have a clear understanding of credit utilization.
03
Lenders and creditors also analyze credit utilization to assess a borrower's creditworthiness and financial health.
04
Individuals who want to improve their credit score or qualify for better loan terms should pay attention to their credit utilization ratio.

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Credit utilization refers to the percentage of available credit that is currently being used by an individual. It is an important factor in determining a person's credit score.
Individuals who have credit accounts, particularly those who are looking to understand or improve their credit scores, are advised to monitor and report their credit utilization.
To calculate credit utilization, divide the total credit card balances by the total credit limits and multiply by 100 to get a percentage.
The purpose of credit utilization is to gauge how much of a borrower's available credit is being used, which helps lenders assess credit risk.
Credit utilization must report total credit limits, current balances, and the percentage of credit being utilized.
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