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Lesson 17 6 minute lesson Interactive
Credit Utilization in Practice
Understand how reported balances compare with credit limits and why lower usage is easier to manage.
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Lesson goal
Calculate utilization and choose habits that keep balances controlled.
Three ideas to keep
1
Utilization compares balance with limit
2
A high limit is not a spending target
3
Paying balances down can lower reported use
Try it
Make the call
A card has a $1,000 limit and a $250 balance. What is the utilization?
Knowledge check
Lock it in
What is the safest way to view a credit limit?
Finish both activities