Sentences with phrase «favorable credit utilization ratio»

The two biggest factors in your credit score are payment history (paying your bill on time) and credit utilization (how much of your available credit you use).2 Using a low percentage of your limit and paying your bill off in full every month will set you up with a record of on - time payments and a favorable credit utilization ratio.

That's going to start establishing a good payment history — the most important component of your credit score — as well as a favorable credit utilization ratio, or how much of your available credit you're using.

It matters because it is challenging to maintain a favorable credit utilization ratio with a credit limit of $ 200 - $ 300.