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Glossary

Credit utilization

Credit utilization is how much of your available credit you're using — your reported balance divided by your credit limit — and it makes up about 30% of your FICO score.

Why it matters

It's the fastest score lever you control: unlike payment history, you can change your reported balance in a single billing cycle, and it has no memory once a lower balance reports.

Example

A $300 balance on a $1,000 limit is 30% utilization; aim to keep it under 10%, with the low single digits (roughly 1-9%) being the sweet spot.

Learn more

Educational only — not financial advice. No guarantees.