What's a good credit utilization ratio?

Under 30% is the standard guidance; under 10% is better; 1-3% reported is optimal. Zero utilization isn't ideal — show some activity.

FICO weights utilization at ~30% of your score. The score formula sees both per-card and aggregate utilization. Pay before the statement closes (not the due date) to lower the reported balance — this is the lever most readers don't know about. A new card raises your total credit limit, which drops utilization overnight; this is one reason a credit-builder card often produces an immediate score bump.

Reviewed by the ClearValue Editorial Team · Last updated 6/29/2026