Creditworthiness is defined as the suitability or reliability of an individual’s ability to obtain and then pay off loans or credit cards on time. The most important aspect of creditworthiness? Credit utilization. This is defined as the amount of credit you are actually using. For example, carrying a balance of $5,000 for a $10,000 credit maximum is a 50% credit utilization. The lower you credit utilization, and the higher your credit maximum, the higher your creditworthiness becomes. A quick rule of thumb for having healthy credit utilization? Always be below 30%. If you are struggling with improving your creditworthiness or credit utilization, PDS may be able to help. Contact our team to get started today!
