Please help us welcome the following new team members to Merchants Bank.
Heather Beardsley has transferred from her role as a Credit Operations Representative to Retail Lending Assistant in Winona. Heather has been in the Credit Operations Department since 2014. Previously she was a Personal Banker at Minnesota First Credit and Savings and a Sales Associate/Assistant Manager for Sherwin Williams. Heather spends a lot of her time with her family and her pride and joy is her four year old son.
Jessi Lawrence has joined Merchants Bank as a Teller in La Crescent. Jessi is a full-time student at Viterbo University with a major in Liberal Studies. She lives in La Crescent and has a two year old Golden Retriever named Bodi. Jessi previously worked at Onalaska Care Center and Flowers by Guenthers. She loves being outside and spending time with family and friends.
Caitlyn Livingston has joined Merchants Bank as a Teller in Rosemount. Caitlyn previously worked at Cub Foods in Customer Service and Carmike Cinemas. She is currently attending Inver Hills Community College, loves animals and traveling.
While the actual formula for calculating a credit score has never been revealed by the Federal Trade Commission, we know credit scores are based primarily on credit report information from the credit bureaus. One piece of this puzzle is your outstanding debt, which includes your credit utilization.
What is credit utilization?
Credit utilization is how much credit you are using compared to how much you have available on your credit card accounts. This amount is typically expressed as a percentage and may also be referred to as your credit utilization ratio. For example, if you have a credit card with a $10,000 limit and your current balance is $5,000; your credit utilization ratio is 50%.
Keep in mind that your credit utilization is comprised of the revolving credit card debt on all of your cards and not influenced by other types of loans you may have, for example a home or vehicle loan.
How much does it impact my credit score?
Most experts agree that your credit utilization ratio accounts for 30% of your credit score. Being almost a third of the potential calculation, your credit utilization can have a significant impact on your score and is something you should keep an eye on.
Is there a perfect formula for managing my outstanding debt?
Perfect? No. But, it’s generally advisable to keep your credit utilization ratio at no more than 30%. This means you’re using no more than 30% of your available credit lines across all of your credit card accounts. In addition, keep these tips in mind:
- Track how much you charge each month to get a handle on your credit utilization.
- In addition to tracking how much you charge, know your current limits for each of your credit cards so you can properly calculate your own ratio.
- Set up automatic balance alerts on your cards so you know when you’re getting close to the 30% ratio.
If you’re looking for a great rate to help you manage your credit card balances, consider a Merchants Bank Visa ScoreCard Credit Card.* We offer 0% APR for the first six months on all balances transfers and purchases and an everyday low rate of 9.99% after that. View disclosures and apply now.
For more credit score education, visit our website or view our video series.
*Subject to approval.