Question

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Question 5 of 10
Which is the best way to lower credit utilization to an acceptable level?
Decrease your credit card balance
Close credit cards
Apply for more credit cards
Increase your credit card balance

Answer 1

The best way to lower credit utilization to an acceptable level is to **decrease your credit card balance**. Lowering the balance on your credit cards directly reduces your utilization ratio, which is the amount of credit you're using compared to your total available credit. Closing credit cards or applying for more credit can have mixed effects and may not be as effective in directly addressing credit utilization. Increasing your credit card balance would likely raise your utilization ratio.