what value does the video recommend keeping your credit utilization percentage below?
What value does the video recommend keeping your credit utilization percentage below?
Answer: The recommended value for keeping your credit utilization percentage below is generally around 30%. Credit utilization is the ratio of your credit card balances to your credit card limits. It is an important factor that affects your credit score. Keeping your credit utilization below 30% shows lenders that you are not overly reliant on credit and can manage your finances responsibly. This practice demonstrates good credit behavior and can positively impact your credit score. High credit utilization, on the other hand, may indicate financial stress and can lower your credit score. Therefore, maintaining a credit utilization rate of under 30% is often advised by financial experts to help build and maintain a good credit score.