The No Job LifestyleCredit utilization is your total card balances divided by your total card limits. Under 30% is what lenders and funding programs look for; under 10% is where top scores live.
Calculate your ratio
30%
Use the balances on your latest statements, since that is what gets reported.
Why it matters
Utilization is one of the biggest parts of your score, and one of the fastest to change. Pay balances down before the statement closes and the lower number gets reported.
Tips
- Check each card too, not just the total
- Ask for limit increases without a hard pull
- Keep paid off cards open so their limits still count
Questions people ask
What is a good credit utilization ratio?
Under 30%. Under 10% is even better.
Does credit utilization reset every month?
It is based on the balances reported each month, so yes, it can change quickly.
Do loans count toward utilization?
No. Utilization is about revolving accounts like credit cards.