Women need to educate themselves about credit if they want to avoid credit problems – and that means you need to understand credit utilization, which accounts for 30% of your credit score.
What is credit utilization? Credit utilization measures that amount of credit that you are using, and generally, you want to keep your credit utilization below 30%.
For example, if one of your credit cards has a credit limit of $1,000 and your balance is $300, then you are using 30% credit utilization for that particular credit card. So, to keep your credit utilization below 30%, make sure you know how much you’re charging each month on each credit card. To calculate your credit utilization, all you need to do is divide your credit card balance by your credit limit, and then, multiply by 100.
Also, if you’re renting, did you know that having your on time rent payments reported to the credit bureaus can help build and improve your score? Solutions like RentReporters can help by reporting your on time rent payments to TransUnion.
For more information on RentReporters, visit here.