How to lower your credit utilization ratio and improve your credit score
Your credit utilization ratio is a powerful thing, and knowing what ratio to aim for offers more control over your finances. Keeping it low can help improve your overall credit score.
If you’re like most Canadians, you have some form of debt, whether that’s a credit card, line of credit, personal loan, or mortgage. And when you borrow money, you’re required to pay interest. The interest rate you’ll pay is based in large part on how risky of a borrower the bank thinks you are. You’ll generally pay a higher interest rate if you have a low credit score versus someone with a high credit score.
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Borrowell helps free people from financial stress. One of Canada’s largest financial technology companies, Borrowell empowers more than one million members with access to free credit scores, report monitoring, automated credit coaching tools, and AI-driven financial product recommendations.