Credit Utilization Explained: Avoid This HUGE Mistake!

Transcript

0:00: Understanding credit utilization can unlock the secrets of your credit profile.

0:04: Right?

0:05: So in, in an example for everybody that maybe can kind of bring this home is that if you have 5 credit cards, say 4 of them are somewhat minimum, $2000 and you barely use them.

0:20: So they're, they're somewhat low credit utilization.

0:24: So now you have 4 different credit cards that are You know, positive, attributes to your credit profile.

0:32: But let's say you took out a very large, credit loan at a high limit.

0:38: It's 30,000 on a 30,000 limit.

0:41: Now, your total utilization is extremely high because that was the big one.

0:46: That was, you know, factoring in when you look at your total credit utilization, right?