Question

You have 2 credit cards. credit card a has a limit of 1500 and credit card b has a limit of 2500. credit card a has a current balance of 500 and credit card b has a balance of 250. which credit card has the lower utilization rate

Answer 1

To determine the lower utilization rate between two credit cards, calculate the utilization rate for each card by dividing the current balance by the credit limit and multiplying by 100. Credit card B has the lower utilization rate.

Step-by-step explanation:

To determine which credit card has the lower utilization rate, we need to calculate the utilization rate for each card. Utilization rate is calculated by dividing the current balance by the credit limit and multiplying by 100.

For credit card A: Utilization rate = (current balance / credit limit) * 100 = (500 / 1500) * 100 = 33.33%

For credit card B: Utilization rate = (current balance / credit limit) * 100 = (250 / 2500) * 100 = 10%.

Therefore, credit card B has the lower utilization rate.