When your credit utilization is reported to the credit bureaus, your credit utilization grade is calculated based on your total credit utilization (ie the balance of all of your credit cards divided by the total credit limit of all of your credit accounts). The lower total credit utilization you have, ideally under 30%, then the better your credit utilization grade is which should have a positive impact your credit score.

Although the total utilization is what is used by the bureaus, individual utilization is still extremely important as it allows you to have better control over your total credit utilization.


If you have started building credit, you have probably heard the term ‘credit utilization’ or ‘credit usage’ used at least once or twice. Credit utilization (which is the same as credit usage) measures the amount of your credit limit that been used. Your credit utilization is calculated by dividing your credit card balance to the accounts credit limit (ie the total amount of money on your credit card that you’re able to spend).

Here is an example:

Card A:

  • Balance: $250
  • Limit: $1,000
  • Card A’s individual credit utilization: 25%

Card B:

  • Balance: $500
  • Limit: $1,000
  • Card B’s individual credit utilization…

Once you have a better understanding of credit and credit scores, it’s easy to get confused on when you should use your Debit Card instead of your Credit Card, and vise versa. If you’re making purchases that you can easily pay back, then paying on a Credit Card, earning reward points, immediately paying off the balance and building your credit score makes sense, but then why would use a Debit Card? Unfortunately, for most people, this is not the case.

Technically, when you spend on a Credit Card, you’re not spending your own money. This concept makes it really easy for Credit Card holders to excessively spend on their Credit Card and run up their credit balance. …


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Most millennials are afraid to begin building their credit score due to a common misunderstanding of how to properly use a Credit Card. If you’re unfamiliar what what a Credit Card is or how it is different than a Debit Card, check out this blog.

Credit Cards are great for certain types of spending and situations as well as to begin building a ‘credit score’ (i.e. a score assigned to an individual that indicates to lenders their trustworthiness to repay a loan). It is not uncommon for parents or guardians to get their child a credit card when they turn 18 or add them to their existing account before they turn 18. …


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When picking the right credit card, it’s important to know your options. Of course, financial institutions (i.e. banks, credit unions) and stores have different credit cards with various perks and incentives, but it’s always good to be aware of the types of credit cards that you can sign up for.

Credit cards are issued as either:


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The dictionary has a lot of different definitions of credit, but from a financial perspective, it is “the provision of money, goods, or services with the expectation of future payment” (via Merriam-Webster). Basically, credit is buying something and paying for it at a later date.

When you sign up and get accepted for a ‘Credit Card’, you are able to borrow money from the card issuer up to a certain ‘credit limit’ in order to purchase items or withdraw cash. As you spend on your Credit Card, you start to increase your ‘credit balance’ which will collect ‘interest’ (i.e. …


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If you haven’t started building credit, you should know that it takes about 2 years of credit history for your credit age to start positively impacting your credit score and 7 years for your credit to be considered ‘mature’. This means it is imperative to start building credit as soon as you possibly can!

If you want more information on why you should start building credit, check out this blog.

So what’s the best credit card for you to start building credit with?

Honestly, the specific credit card you choose really depends on your current financial situation as well as any financial goals you may have, but there are definitely some criteria you want to follow when deciding the type of credit card to start…


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About 15% of your credit score is based on the length of time since opening your first line of credit, also known as your “credit age”. This means the longer you have had credit, the better it is for your credit score.

It takes about 2 years of credit history for your credit age to start positively impacting your credit score and 7 years for your credit to be considered ‘mature’. This means it is imperative to start building credit as soon as you possibly can!

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Curu

One-stop shop for all things credit & financial success! Start building credit today by visiting curu.app.

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