Credit Score
Credit Card Utilization
Utilization is the percentage of your revolving credit you are using. It is one of the most influential — and fastest-moving — factors in most credit scores.
How utilization is calculated
Per-card utilization is the balance on a single card divided by that card's limit. Overall utilization is your total revolving balances divided by your total revolving limits. Most scoring models look at both.
What to aim for
- Below 30% of any individual card's limit
- Below 10% per card if your goal is to maximize your score
- Avoid maxing out any single card, even temporarily
Why timing matters
Card issuers usually report your balance on the statement closing date — not the due date. Paying down before the statement closes can reduce the balance that shows up on your reports.
Quick tactics
- Make a mid-cycle payment to lower the reported balance
- Spread spending across multiple cards instead of concentrating on one
- Request a credit limit increase if it will not trigger a hard inquiry
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