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What is credit utilization?

Quick answer

Credit utilization is the percentage of your available credit you're using — total balances divided by total credit limits. Below 30% is OK; below 10% is ideal. Per-card utilization also matters. Pay before statement closing date if possible — that's the balance reported to credit bureaus.

More context

Credit utilization is the percentage of your available credit you're using — total balances divided by total credit limits. Below 30% is OK; below 10% is ideal. Per-card utilization also matters. Pay before statement closing date if possible — that's the balance reported to credit bureaus. The exact answer depends on your specific situation — the numbers above are a strong starting point, but the right next step is to plug in your actual figures.

For a deeper analysis, use one of the related tools below — they take your specific income, debt, location, and goals as inputs and produce a tailored answer.

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