Credit Utilization Guide
Utilization is revolving balance divided by revolving limit. It is one of the fastest-moving FICO and VantageScore factors because issuers usually report a monthly snapshot — often the statement balance — not what you owed this morning.
Statement date vs due date
The due date is when you must pay to avoid a late. The statement closing date is when many issuers photograph the balance for the bureaus. If you pay in full on the due date but the statement still showed 47% utilization, the score may still see 47% until the next cycle.
Pay extra principal before the statement closes if you are trying to move the next score pull (mortgage, auto, apartment).
Per-card vs overall
Models look at overall revolving utilization and often at individual cards. One maxed card can hurt even if your total ratio looks fine. Spreading a balance can help the per-card picture; paying it down helps both.
Targets that are actually used
Under 30% is a common underwriting talking point. Under 10% is where many strong profiles sit. 0% on every card is not always the peak — some models like to see small reported use. None of these are laws. They are patterns.
Run the utilization calculator with your real limits.
Closing cards and “available credit”
Closing a card can raise utilization by shrinking the denominator. It can also shorten average age. If the card is clean and free, think twice. If it has a fee you will not use, do the math first. For the account-age side of that decision, see how closing your oldest revolving account affects average age of accounts.