This all makes sense, Jason. I'm based in Germany and have never borrowed money. I can imagine, though, that there's a similar system here that lets you and financial institutions assess how much you can borrow and under which conditions.
Yes, good shout out, Omar. Credit utilization ratio is the percentage of the available credit that you're using on a given credit card account, as well as across all of your credit cards!
I’ve gotten in the habit of paying my card balance before it’s due as getting over 30% on a card can impact score by 20-30 pts. Which can make a big difference when getting a loan. It’s annoying to have to do this as it leaves most of your credit unused.
A very impressive yet simple explanation. I rarely read and subscribe but I just did. I hope to consistently share your post to liberate a lot more people. If you consider exchanging recommendations, I’m open to that.
Super helpful, thanks
Glad to hear to hear!
This all makes sense, Jason. I'm based in Germany and have never borrowed money. I can imagine, though, that there's a similar system here that lets you and financial institutions assess how much you can borrow and under which conditions.
Thanks Jason - a great read as always!
Thanks Angela - appreciate the feedback!
Credit score utilization is against each card and your entire credit amount.
Yes, good shout out, Omar. Credit utilization ratio is the percentage of the available credit that you're using on a given credit card account, as well as across all of your credit cards!
I’ve gotten in the habit of paying my card balance before it’s due as getting over 30% on a card can impact score by 20-30 pts. Which can make a big difference when getting a loan. It’s annoying to have to do this as it leaves most of your credit unused.
A very impressive yet simple explanation. I rarely read and subscribe but I just did. I hope to consistently share your post to liberate a lot more people. If you consider exchanging recommendations, I’m open to that.
Thank you for the kind words!
Thanks, Denis! Yes, my understanding is that the broad principles and approach taken to credit scores is very similar in European countries also.
This was useful information - thank you for sharing. Finance is simple when explained like this.