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- 9. Choose a real estate agent carefully
- Selling to Opendoor
- 5. Choose investments that match your tolerance for risk
- Cheapest auto insurance for poor credit
- What are the deductibles?
- Be flexible with destination, airport and dates
- Franchising pros
- Swagbucks
- 4. Set a budget for your stock market investment
- Spa
- Paying with a personal loan
- Vanguard 500 Index Fund (VFIAX)
- 7. Self-publish an e-book
- 17. Begin niche blogging
- Reviews
- 3. Prep for grocery shopping
- Our pick for foodies
- 1. No liability protection
- Drawbacks
- Nonresident status rules
- Flood determination and monitoring fees
- Where is the best place to exchange currency?
- Explore startups
- Complaint resolution delayed: 0 – 5 points
- 5. Your loan is cleared to close
- Home equity line of credit
- Consumer discretionary ETFs
- Past years' state tax rates
- Call and ask
- Dividend payout ratio
- Our pick for: An upgrade path
- How do you get a perfect credit score?
- 8. Bank of America® rewards
- How to use a W-4 to owe nothing on a tax return
- 10. Narrow down your ideal type of house and neighborhood
- Gap Good Rewards Mastercard® Credit Card
- Ascendus
- MetaMask: 4.0 out of 5 stars
- Paying by cash or check
- Keystone Advantage Assistance Loan Program
- Listing with Opendoor
- Vanguard Total Stock Market Index Fund (VTSAX)
- 7. CDs
- Amex EveryDay® Credit Card
- 5. Secure a gas supplier contract
- Government recording fees
- Airport lounge access
- How do I find a currency exchange near me?
- Rethink your bank
- Quiet room
- American Airlines credit cards
- Delta Airlines credit cards
- JetBlue credit cards
- Southwest Airlines credit cards
- United Airlines credit cards
- Other airlines' credit cards
- How to maximize your rewards
- 7. Poshmark
- 18. Become an e-book writer
- Part-year resident status rules
- 5. Build a community
- Franchising cons
- 11. Monetize your social media accounts
- Save
- BriteCo
- Vanguard Total Bond Market Index Fund (VBTLX)
- 5. ABLE Accounts
- Golden crosses and death crosses
- 2. Harder to get financing and business credit
- Pros
- Loan-origination charges
- Where can you exchange currency for free?
- Time in business: 0 – 10 points
- Cash-out refinance
- 8. Get advertising revenue from your blog or YouTube channel
- Property-based passive income ideas
- 12. Get paid to stream on Twitch
- Service
- Vanguard Balanced Index Fund (VBIAX)
- 19. Start ghostwriting
- Our pick for: Customizable bonus categories
- Shopify
- 4. Minimize restaurant spending
- Best insurance company for having few customer complaints: American Family
- Cons
- 3. Building a budget
- Which one should I take?
- 6. Obtain necessary permits and licenses
- Mortgage insurance or fees for government-backed loans
- Hotel status
- Get excited about a minority-owned stock exchange
- 5. Focus on investing for the long-term
- Electrum: 2.5 out of 5 stars
- Best insurance company for having few customer complaints: American Family
- Nonresident status rules
- How to Start Investing: A Guide for Beginners
- Compare car insurance rates for drivers with a DUI
- Licensing pros
- Invest
- PHFA Grant
- Vanguard Growth Index Fund (VIGAX)
- 20. Become a resume writer
- Our pick for: No security deposit, low annual fee
- Best Robo-Advisors
- 8. Buy a rental property
- American Express® Green Card
- Other details you should know about Zengo Wallet
- 11. Stick to your budget
- Justine Petersen
- Personal loan
- Best Western credit cards
- Hilton credit cards
- Hyatt credit cards
- IHG credit cards
- Marriott credit cards
- Wyndham credit cards
- Other hotel credit cards
- Best Online Stock Brokers for Beginners
- 3. It’s harder to sell your business
- California earned income tax credit (CalEITC)
- 7. Get business insurance
- Pest inspection
- Transfer partners
- Floods
- GemShield
- Vanguard Small Cap Index Fund (VSMAX)
- 21. Open a coworking space
- Cheapest car insurance for young drivers
- 5. Get discounts on entertainment
- How Asset Allocation Impacts Your Portfolio
- Licensing cons
- 9. Become an Instagram influencer
- Testing a resistance level
- What Is Socially Responsible Investing and How to Get Started
- 9. Rent out your own house
- California young child tax credit (YCTC)
- 8. Market yourself
- Prepaid expenses
- Pay off debt
- 6. Manage your stock portfolio
- Vanguard Total International Stock Index Fund (VTIAX)
- Our pick for travel
- 1. Has the W-4 form changed?
- 4. Saving money
- MyLowe’s Rewards Credit Card
- 22. Become an online coach
- 6. Map out major purchases
- California child and dependent care tax credit
- 12. Make the most of walk-throughs and open houses
- HOMEstead Downpayment and Closing Cost Assistance Loan
- 10. Get a roommate
- American Express® Gold Card
- Tax monitoring and research fees
- Card ecosystem
- Earthquakes
- 23. Flip failing websites
- How much are car insurance quotes?
- Our pick for: No security deposit, low annual fee, potentially high credit limit
- 1. What does "sole proprietor" mean?
- 2. What does it mean to be exempt from taxes?
- California adoption cost tax credit
- Is Zengo Wallet right for you?
- Repeat
- Jewelers Mutual
- 10. Monetize your Twitch channel
- Our pick for: Bank of America® customers
- Best insurance company for financial strength: Auto-Owners
- Alternative investment passive income ideas
- Title-related costs
- Kiva U.S.
- Ledger: 5.0 out of 5 stars
- Wildfires
- Best insurance company for financial strength: Auto-Owners
- 24. Become a web developer
- Cheapest auto insurance for senior drivers
- 7. Restrict online shopping
- NYC tax rate schedule
- 2. Can a sole proprietor have employees?
- California nonrefundable renters tax credit
- How we review crypto wallets
- 13. Don’t skip the home inspections
- 25. Start a podcast
- 3. Does a sole proprietor need an EIN?
- Programs for Persons With Disabilities
- 3. When should I review my W-4?
- 11. Peer-to-peer lending
- The Platinum Card® from American Express
- Marriott
- Trezor: 4 out of 5 stars
- 26. Be a social media influencer
- Which factors determine car insurance quotes?
- 8. Delay purchases with the 30-day rule
- 4. How do you change from sole proprietor to LLC?
- Lavalier
- 11. Sell your photography
- Our pick for: Average credit and rewards
- Compare auto insurance rates for drivers with poor credit
- 14. Negotiate with the seller
- Credit required
- 4. Can I adjust my W-4 multiple times throughout the year?
- Real estate agent commissions
- 27. Create online courses
- 9. Get creative with gifts
- Our pick for luxury perks
- 12. Private equity
- TJX Rewards® Platinum Mastercard®
- Grameen America
- SafePal: 3.8 out of 5 stars
- Our pick for: Paying rent
- 9. Familiarize yourself with your day-to-day responsibilities
- Property and transfer taxes
- 28. Become a marketing consultant
- Best insurance company for discounts: Amica
- What should you do if you’re invested in these REITs?
- American Express® Business Gold Card
- 15. Buy adequate home insurance
- Overseas acceptance
- Best insurance company for discounts: Amica
- Title insurance
- Employer-Assisted Housing Initiative
- 10. Lower your car costs
- Methodology
- 29. Develop an app
- Our pick for: Average credit and no annual fee
- Apple Cash: digital card
- 13. Crypto staking
- 12. Become a dog walker with Rover or Wag
- Your house
- 5. Maximizing your credit cards
- 11. Reduce your gas usage
- 30. Make a smart appliance
- Your location
- Cash App debit card
- The Business Platinum Card® from American Express
- 31. Tap into virtual reality experiences
- You and your stuff
- Pros
- 13. Sell unused gift cards
- 12. Bundle cable and internet
- Product creation passive income ideas
- Costco Anywhere Visa® Card by Citi
- 32. Make a niche dating site
- Our pick for: Limited credit
- Cons
- 33. Develop a chatbot
- 13. Switch your cell phone plan
- Best insurance company for customer satisfaction: State Farm
- 14. Write content
- Best insurance company for customer satisfaction: State Farm
- 6. Borrowing money
- 14. List your spare bedroom on Airbnb
- 34. Offer matchmaking skills
- Compare insurance rates for drivers with an accident
- 1. Understand your eligibility requirements
- Hyatt
- 35. Be a virtual assistant
- 14. Reduce your electric bill
- Our pick for: Good credit
- 36. Reinvent exercising
- 15. Lower your student loan payments
- 15. Publish a digital course
- 2. Find and choose a microlender
- Verizon Visa® Card
- 37. Create eco-friendly, health-friendly makeup and beauty products
- Best insurance company for military members: USAA
- Best insurance company for military members: USAA
- 15. Sell your gently used clothes
- 16. Cancel unnecessary subscriptions
- Car-related passive income ideas
- 3. Submit your application
- 38. Open a food truck or restaurant pop-up
- What is a prepaid debit card?
- Our pick for: Travel
- 39. Start an organization business
- 17. Refinance your mortgage
- 16. Wrap your car with ads
- What is a prepaid credit card?
- 40. Do interior design for young professionals
- 16. Trade in old phones, electronics for cash
- 18. Set savings goals
- Where can you get a prepaid card?
- 17. Rent out a parking space
- How do you add money to a prepaid card?
- Our pick for: Instant gratification
- Which prepaid card is best?
- Chase Freedom Flex℠
- 17. Get a babysitting gig
- 19. Track spending
- 7. Your credit score
- 20. Pay off high-interest debt
- 1. Gather your information
- 18. Rent out your car
- 21. Keep savings in a high-yield savings account
- Our pick for: Personalized rewards
- 22. Create a 50/30/20 budget
- 2. Choose the right liability car insurance coverage levels
- Discover it® Cash Back
- 19. Sign up for TaskRabbit
- 23. Shop consignment and thrift stores
- 20. Become a private tutor
- 24. Join initiatives to get free items
- 3. Decide if you need full coverage car insurance
- 21. Drive for Uber, Lyft
- 8. Taxes
- Trip cancellation
- 25. Use car sharing services
- Trip interruption
- 22. Make deliveries for Amazon, Uber Eats
- Trip delay
- 26. Stock up on household supplies when they’re cheap
- 9. Paying off debt
- 4. Collect and compare car insurance quotes
- 23. Find work as a housesitter
- Cancel For Any Reason
- 27. Enjoy community events
- Baggage delay
- 24. Sign up to be a mystery shopper
- 28. Cash in on your birthday
- Lost baggage
- Travel medical insurance
- 25. Put your drone to work
- Compare car insurance companies
- 10. Insurance
- 11. Investing
- 12. Starting or running a business
- 13. Travel
- The NerdWallet Smart Money podcast
Your credit utilization is simply the portion of your available credit you use, expressed as a percentage. It is the total of balances on all your credit cards divided by the total of all your credit limits. (It's also figured on a per-card basis.) This number is a big factor in your credit score — the less available credit you use, the better it is for your score.
Here’s how to keep your utilization low.
Why is having a low credit utilization important?
Paying your balances on time and in full every month is the best way to keep your score intact or build it. On the other hand, using a larger portion of your credit limit could do damage. Credit utilization accounts for around 20% to 30% of your credit scores.
But if a financial crisis means you have to lean on credit cards, take heart: Credit scores can rebound quickly once you're able to lower your utilization.
How to lower your credit utilization
1. Keep your charges on each card to a minimum
The simplest way to avoid losing credit score points for using too much of your limits is to watch how much you charge to each card. Make a habit of patrolling your online accounts to keep tabs on spending. If you are close to using 30% of your credit limit on one card, try to make a payment or switch to using another card.
Simply getting into the habit of paying twice per month instead of once could help you decrease your credit usage. Lower balances can save you interest if you carry a balance — and are good for your credit score regardless.
You can also monitor your per-card and overall credit utilization by viewing your credit score profile from NerdWallet.
2. Ask for higher credit limits
If it’s tough for you to avoid utilizing more than 30% of your available credit, another solution might be to request a credit line increase on your card or cards. Getting a credit limit increase might require you to call your card issuer or make the request online. Sometimes increases are offered automatically if you’ve had your card for a while and have a positive payment history, so be on the lookout for those offers when you log in to your account.
Another option to get a higher overall credit limit is to ask a friend or relative to add you as an authorized user on an established account. The primary user doesn't even have to give you a card or tell you the account number for your credit score to benefit. Do choose carefully: Being on the account of someone who is having problems with credit could affect your score, too. You want to be on an account showing good payment history, preferably with a high credit limit and consistently low credit utilization.
A higher overall credit limit could help you keep your credit utilization lower than it would be otherwise. This could make a big difference in your credit score. You can check your own credit to see the effect (and it won't hurt your score).
3. Set up balance alerts to stay on top of spending
If you find yourself consistently overspending, setting up balance alerts can help keep your spending in check.
Sign up with your credit card issuer to receive alerts via text message or email. You can choose to be alerted when the balance reaches a certain amount or percentage of your credit limit. Your goal is to keep the balance below 30%.
4. Pay your bill before your issuer reports to the credit bureaus
Most credit card issuers report your balance and payment activity to the credit bureaus once every 30 days. However, this doesn’t necessarily coincide nicely with when your bill is due. If your issuer reports a few days before the end of your billing cycle, you’ll consistently look like you’re carrying a high balance — even if you pay it off in full just a few days later.
Place a call to your card issuer’s customer service line to find out when it reports to the credit bureaus. Simply pay off as much of your balance as you can in advance of that date every month, and you might see a jump in your score.
5. Monitor your total credit utilization
If you have multiple credit cards, it might be hard to view the bigger picture of your credit utilization. Using the calculator below, input your credit card balances and limits to check whether you're under the recommended 30% utilization threshold.
If you’re creeping up to that limit, do your best to pay down your balances and explore ways to stop spending money.