How to Maintain Low Credit Utilization & Pay Off Credit Cards

Should you pay your credit cards off? Well, that's a great question. More important than actually paying the credit cards off is how high is your utilization. Credit utilization just simply means if you have a combined credit limit of say $10,000 over a number of credit cards, and you only have a revolving debt of around $2,000 or $3,000 a month, that would say that your credit utilization is 20 to 30%. I think that would probably be the best situation. You still want to use your credit and you still want to use your available credit, but you don't want to get in a situation that has your utilization higher than maybe 30-40% max. So keep on top of that. Make sure you make your payments on time and don't need to pay off your credit cards. Just keep your utilization

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