Question

4. Suppose you have two credit cards. The first has a balance of $410 and a credit limit of $1,000. The second has a balance of $510 and a credit limit of $1,000. What is your overall credit utilization?

26%
56%
16%
46%
36%

Answer 1

in order to keep a good balance on your credit cards I believe it's 36% that shows that you don't over use your card to be having to pay $1,000 balance due to the 500 of what you're looking for

Answer 2

Answer is 46%.

Following are the calculations

Both cards have credit limits of $1000

First car has a balance of $410

So 1st card utilization is 410/1000= 0.41*100= 41%

2nd card balance is $510

So 2nd card utilization is 510/1000= 0.51= 51%

So total utilization of cards is (41% + 51%) / 2 = 46%