Which of the following best describes 'credit utilization' as a factor in your credit scor

A) The total number of credit accounts you have open.

B) The percentage of your available credit that you are currently using.

C) The length of time you have had credit accounts.

D) The number of recent inquiries made to your credit report.

Explanation

Credit utilization is a key factor in credit scoring models, representing the ratio of your current credit card balances to your total available credit limits. Lenders generally prefer to see a low credit utilization ratio, typically below 30%.

Practice More General Knowledge Questions

Which of the following best describes 'credit utilization' as a factor in your credit score?

Explanation