What Is Credit Utilization And Why Does It Affect Your Score? - Latino Finance Experts

What Is Credit Utilization And Why Does It Affect Your Score? Are you curious about how your credit habits can influence your financial future? In this video, we’ll explain what credit utilization is and why it plays a key role in your credit score. We’ll cover how to calculate your utilization rate and why keeping it low is beneficial for your financial health. You’ll learn how credit utilization makes up about thirty percent of your FICO score and how it reflects your ability to manage debt responsibly. We’ll also share practical tips on how to keep your utilization low, such as paying down balances before statements close, requesting credit limit increases, and maintaining old accounts. For Latino families working to build or rebuild credit, understanding these strategies can be a game-changer when planning important expenses like quinceañeras, sending remittances, or applying for educational aid. Good credit management can also help you qualify for better loan terms and improve your overall financial stability across generations. Whether you're just starting out or looking to strengthen your credit profile, this video provides essential guidance to help you make informed decisions. Join us to learn how controlling your credit utilization can open doors to new financial opportunities and stability.

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About Us: Welcome to Latino Finance Experts! Our channel is dedicated to empowering the Latino community with practical money management strategies and culturally aware financial planning. We tackle essential topics like budgeting for multigenerational households, sending remittances, navigating financial aid, building credit as an immigrant, and achieving family savings goals. By providing bilingual financial resources, we aim to support first-generation wealth building and strengthen financial literacy in Latino communities.