Credit Utilization
The percentage of your available credit you’re using — a major factor in your credit score.
What does credit utilization mean?
It’s your total balances divided by your total credit limits. Keeping utilization below 30% (ideally under 10%) signals you’re not overextended and helps your score.
Put it to use
Related terms
Credit Utilization — frequently asked
What is a good credit utilization ratio?
Keep it under 30% of your available credit, and under 10% is ideal for the best scores. If your limits total $10,000, try to keep reported balances below $3,000 — the lower, the better for your score.
Does paying my card before the statement date help my score?
Yes. Card issuers report the balance on your statement date, so paying most of it down before that date lowers the utilization that gets reported — which can lift your score even if you pay in full every month anyway.