Credit card balances as a percentage of credit limits.
Utilization is ~30% of a credit score. Under 30% is fine; under 10% is excellent. It has no memory — paying balances down helps your score within a statement cycle or two.
Example: $3,200 balances on $18,000 limits = 17.8%.
FAQ
What is Credit Utilization in simple terms?
Utilization is ~30% of a credit score. Under 30% is fine; under 10% is excellent. It has no memory — paying balances down helps your score within a statement cycle or two.