Using APR Credit Utilization Calculators
A credit card utilization calculator is a useful financial tool for anyone who needs it. This financial tool is a financial comparison of how much you spend on your credit cards versus the amount of money that you earn in a given month. It evaluates your credit card utilization ratio. Your credit utilization ratio is the exact ratio of what you are spending versus the amount of money that you are earning. If you are carrying a high credit card balance, the higher your credit card utilization ratio will be, which means that you are getting more credit card offers and being charged a higher interest rate.
In your search for an appropriate credit card utilization calculator, use the free online version at the Bankrate website to evaluate your credit score. Enter your credit card utilization ratio in the provided box. Once you click the submit button, you will obtain your report and you can instantly see your credit score from the report. There is also a guide explaining how to use the tool.
Once you have evaluated your credit card utilization ratio, determine what type of credit cards best suits you. Now you have to determine how much credit limit you need for the type of credit card that you want. For example, if you need a credit card to cover emergency expenses, a debit card is a better option than a credit card. You can easily get a line of credit by using an electronic check. You can easily convert the check into cash with your bank.
Also, take a look at the interest-free credit cards and the transferable credit cards that you can obtain. The best free cards would be those that offer a zero percent balance transfer fee as well as the longest terms possible. These types of cards are very convenient especially for people with poor credit reports. The best free credit cards would be those offered by banks or other institutions with no interest fees.
Your credit card utilization ratio calculator can also be used to calculate an ideal monthly payment amount. This is essential for people who are planning to buy a house or a car. You can plug in your estimated monthly salary and the interest rate into this calculator to get an estimate of the amount you will need to pay for your new purchase. This would be more accurate than the conventional method of estimating.
Other things that can be done with the help of the APR credit utilization calculator are those involving refinancing, mortgage, and student loans. There are a lot of other things you can do with it such as those involving insurance, real estate, automobiles, and a host of others. You can even plug in your tax information to calculate your tax advantages. In essence, you can make an accurate estimation of how much you will be paying on your debt by using the most recent version of the APR credit utilization calculator.
