🏦 Understanding Credit Utilization 🏦
Credit utilization refers to the percentage of your credit card balances compared to your credit limits. This ratio significantly impacts your credit score, influencing your ability to secure loans.
Why Does it Matter?
- **Enhance Your Credit Score:**
Maintain a utilization ratio below 30% to foster a healthy credit score.
- **Increase Borrowing Power:**
Stronger credit scores can lead to lower interest rates on loans and mortgages.
- **Achieve Financial Flexibility:**
Effective management of unsecured credit grants greater financial autonomy.
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**Best Practices for Unsecured Credit:**
1. **Track Your Expenses:** Monitor credit card balances and avoid maxing out cards.
2. **Make Timely Payments:** Consistent on-time payments positively impact your credit score.
3. **Limit Credit Inquiries:** Strategic applications minimize temporary score reductions.
Take Charge of Your Credit!
Connect with McLellan Mortgages - Advisory X for expert guidance!
