To monitor your credit utilization ratio, you can take the following steps:
- Obtain your credit report: You can request a free credit report once a year from the major credit bureaus.
- Calculate your credit utilization ratio: Divide the total amount of credit you’re currently using by your total credit limit. This will give you your credit utilization ratio, which is usually expressed as a percentage.
- Check for errors: Review your credit report for any errors or discrepancies that might affect your credit utilization ratio.
- Keep track of your spending: Regularly check your credit card statements and keep track of your spending to ensure you’re staying within your credit limit.
- Pay down debt: If your credit utilization ratio is high, consider paying down your debt to reduce your ratio and improve your credit score.
Remember, a lower credit utilization ratio is generally considered better for your credit score, so aim to keep it below 30%.