12 Things You Wish You Knew About Credit Reports Before Borrowing Money
- Credit utilization ratio is important to most lenders. This takes into consideration the amount of debt you owe on a particular account, and the credit limit assigned to you. Banks and credit card companies look for a ratio of no more than 30%, meaning your balance should not exceed 30 percent of your credit limit. Maxed out credit accounts look bad to prospective creditors and lower credit scores.