The credit utilization ratio is also one item that establishes your credit scores. Simply put, it is the aggregated debt you own in contrast to the credit limit. For instance, if your credit limit is $2000 and your debt is $1000, this implies your credit utilization score is 50%. For better outcomes, ensure your credit utilization is below 30%. This lets lenders know you are good with finances and utilize only a small portion of the available credit.