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What formula is commonly used to calculate your credit utilization ratio?
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(Total Debt / Total Credit Limit) * 100
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Total Debt / Total Credit Limit
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Total Credit Limit * Total Debt
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Total Debt * Total Debt
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It's Wrong!
The credit utilization ratio is a measure of how much of your available credit you're using. It's calculated by dividing your total debt by your total credit limit and then multiplying by 100 to express it as a percentage. Lower ratios are generally considered better for your credit score.
