nerdyaspects:That there’s a difference between usage and utilization that can heavily affect
nerdyaspects: That there’s a difference between usage and utilization that can heavily affect your credit. 29% of your balance allowed is considered utilization. You should productively be utilizing the credit card and not borrowing money (using credit) too much to pay for things. You’re allowed to “use” 100% of your credit card but the more you use after 29%, the worse your credit score becomes because you aren’t utilizing it. Every 6 months, your credit card company increases your balance allowed so that you can utilize more funds. You can also request the balance increase from your credit card provider. Example. Say my balance allowed is $100.00, if I only spend 29.00 (29%) of those funds I am utilizing my credit rather than abusing (using) it. Eventually (6 months or less if requested) the company notices I’ve been doing well with the card and expands my balance to 300.00. That means now that my 29% utilization has increased from 29.00 to 87.00. The more you know. -- source link