What is the optimal ratio of used credit to credit limit for your credit score?

Asked by: Gina Jenkins

What is a Good Credit Utilization Rate? In a FICO® Score or score by VantageScore, it is commonly recommended to keep your total credit utilization rate below 30%. For example, if your total credit limit is $10,000, your total revolving balance shouldn’t exceed $3,000.

What is the best credit utilization ratio for credit score?


You definitely want your credit utilization to be less than 50%. You should always try to keep it below 30%. And the best credit utilization ratio is below 10%. On that note, it’s important to point out that utilization is generally calculated using a credit card’s monthly statement balance.

What is a good proportion of balances to credit limits?

Amounts owed count for 30% of a credit score, so if someone plans to take out a loan in the near future, they will want to pay careful attention to their balance-to-limit ratio. Keeping balance-to-limit ratios below 30% on each card will help boost a credit score.

What should you keep your utilization ratio at?

Your credit utilization rate (or amounts owed) makes up 30% of your FICO credit score and is the second-most important factor after payment history. Experts generally recommend keeping your utilization rate below 30%, with some suggesting that a single-digit utilization rate (under 10%) is best.

Is one credit or 0 Utilization better?

While a 0% utilization is certainly better than having a high CUR, it’s not as good as something in the single digits. Depending on the scoring model used, some experts recommend aiming to keep your credit utilization rate at 10% (or below) as a healthy goal to get the best credit score.

How much of a 200 credit limit should you use?


To keep your scores healthy, a rule of thumb is to use no more than 30% of your credit card’s limit at all times. On a card with a $200 limit, for example, that would mean keeping your balance below $60. The less of your limit you use, the better.

How much of a 500 dollar credit limit should I use?

Using more than 30% of your available credit on your cards can hurt your credit score. The lower you can get your balance relative to your limit, the better for your score. (It’s best to pay it off every month if you can.)

Should I leave a small balance on my credit card?

It’s Best to Pay Your Credit Card Balance in Full Each Month

Leaving a balance will not help your credit scores—it will just cost you money in the form of interest. Carrying a high balance on your credit cards has a negative impact on scores because it increases your credit utilization ratio.