Suppose you have two credit cards. the first has a balance of $415 and a credit limit of $1,000. the second has a balance of $215 and a credit limit of $750. what is your overall credit utilization?

The credit utilization amount is $630, and credit utilization rate is 36%.

Further Explanation:

Credit utilization rate:  Card utilization amount is the total amount of credit card balance. When the user of the credit card uses the funds from the credit card, then the funds used by the cardholder is known as credit card balance. Credit utilization is computed by dividing the credit card balance to the total credit limit.

Calculate the credit utilization rate:

Thus, the credit utilization amount is $630, and credit utilization rate is 36%.

Working note:

Calculate the total credit card balance:

Calculate the total credit limit:

Learn more:

1.Learn more about missing the monthly credit card payment

2.Learn more about the minimum payment of credit card  

3.Learn more about the features of credit card

Answer details:  

Grade: Senior School

Subject: Business Studies

Chapter: Money and Banking

Keywords: Credit card, balance, credit limit, second, credit card utilization, credit utilization, credit utilization rate, supposes, two credit cards, credit card balance, first, second.

answer; swot analysis;