Sentences with phrase «considered high credit utilization»

Borrowing a significant amount of your credit limit can actually have a negative effect on your credit score and can be considered high credit utilization.

Not exact matches

You may be wondering what is considered a high utilization ratio by credit card companies and by financial advisors.

If your credit utilization is too high, lenders consider you higher risk.

For example, if you have a credit limit of $ 1,000 and have used up $ 500 of it, that means your utilization is 50 percent, which is considered high in the eyes of lenders.

For example, if you currently have a balance of $ 5,000 on a card with a $ 7,500 credit limit, your credit utilization ratio is nearly 67 %, which is considered high.

Fannie Mae's announcement says, in part, «A borrower whose revolving credit utilization is high and / or who only makes the minimum monthly payment each month will be considered higher risk as it indicates the borrower may have trouble making payments in the future.»

While all FICO ® Score versions consider high credit card utilization to be reflective of higher risk, FICO ® Score 8 is more sensitive to highly utilized credit cards.

High credit utilization is considered dangerous because it increases the risk of default and warns other lenders not to issue additional credit.

For example, if you have a credit limit of $ 10,000 and you're using $ 5,000 of it, then you credit utilization ratio is 50 percent, which is way too high to be considered good credit use.