The 30% Number Everyone Quotes
Credit utilization, the percentage of available credit you're using, is the second most important factor in your credit score after payment history. The common guideline is below 30%, but scoring models reward under 10% even more.
How It's Calculated
Utilization is measured per-card and overall. A $2,000 balance on a $5,000 limit card is 40% utilization on that card. Add a second card with a $10,000 limit and $500 balance, and your overall utilization is $2,500 of $15,000, about 17%. Both matter. A single maxed-out card hurts even if overall utilization is low. The Credit Card Calculator on DebtCalc shows per-card and total utilization at a glance.
Why Timing Matters
Most issuers report your balance on the statement closing date, not the payment due date. Even if you pay in full monthly, a high statement balance gets reported. Paying down before the statement closes is a simple way to lower reported utilization.
Improving Utilization Without Paying Off Everything
Three strategies: pay down before statement dates, request credit limit increases (lowers the ratio without reducing debt), or spread charges across cards to avoid high per-card utilization. None solve underlying debt, but they improve your score while you work on payoff. Check your utilization for free through Credit Karma, which shows per-card breakdowns and tracks changes over time.