Credit Utilization
The percentage of available credit you're using. 30% of your FICO score.
Credit utilization is the percentage of available revolving credit a consumer is using at any given moment. Calculated as: total credit card balances divided by total credit card limits. FICO 8 weighs utilization at 30% of the total score — second only to payment history.
Two utilization figures matter: per-card utilization and aggregate utilization. Both factor into FICO; a single card maxed out hurts even when aggregate is low.
Critical thresholds: below 30% is the standard "keep utilization under" benchmark. Below 10% is the optimization target where 800+ scorers cluster. 0% is slightly worse than 1-9% — FICO wants to see active credit usage. The penalty curve is non-linear: each 10-point band has a different score impact.
Utilization is the fastest-moving FICO factor. Pay before the statement-close date and the new lower balance is reported at the next reporting cycle (~30 days).
Also called
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The credit score model developed by Fair Isaac Corporation. Used by 90%+ of U.S. lenders.
The maximum balance a consumer can carry on a revolving credit account. Plays a major role in utilization math.
The day a credit card billing cycle ends. The balance on this date is what gets reported to the bureaus.
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