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What is Credit Utilization Rate? Comments

  • By Jocelyn Black Hodes, DailyWorth's Resident Financial Advisor
  • June 21, 2013

Credit Utilization Rate is an important factor used by credit bureaus when determining credit scores that is calculated by dividing the total of all outstanding balances by the total of all credit limits for each account. Generally, higher utilization rates will lower your credit score. 

 

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