National Debt Relief Talks About The Importance Of Credit Utilization In Credit Scores

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National Debt Relief recently discussed in an article published December 14, 2016 why credit utilization is important in determining a person’s credit score. The article titled “Credit Utilization and Why Yours is Such a Big Deal” looks at what makes up credit utilization and shares how critical it is in managing a decent credit score.

NationalDebtRelief.com

Their score is a crucial component of their financial planning

National Debt Relief recently discussed in an article published December 14, 2016 why credit utilization is important in determining a person’s credit score. The article titled “Credit Utilization and Why Yours is Such a Big Deal” looks at what makes up credit utilization and shares how critical it is in managing a decent credit score.

The article starts off by pointing out that a consumer needs to have a good idea of the factors that make up their credit score. Their score is a crucial component of their financial planning because it can either be an asset or a liability. It can help them manage interest payments and even insurance premiums.

Considering all the components of a credit score, the article shares that the biggest one is on-time payment of bills. However, people are not aware of the second biggest component used to calculate a person’s score. It is their credit utilization which still baffles quite a few number of people not really knowing what it is.

The article explains that this is simply the ratio that shows the relationship between how much available credit a person has in relation to their balance. The lower the percentage, the better because lenders make a big deal out of this component. A high credit utilization percentage is less attractive to potential lenders because it is interpreted as a high risk for defaulting.

To read the full article, click https://www.nationaldebtrelief.com/credit-utilization-big-deal/

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Paul Ritz
@NationalRelief_
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