What is a good credit utilization ratio?

Under 10% is excellent, 10–29% is good, and 30% or higher starts dragging your score. Per-card utilization matters as much as overall.

How does utilization affect my score?

Credit utilization is roughly 30% of your FICO score — the second-largest factor after payment history. It updates as soon as new balances are reported, so changes can show within one statement cycle.

Does paying my card mid-cycle help?

Yes. Issuers usually report your statement balance, so paying it down before the statement closes lowers the reported utilization.

Will closing a card hurt my utilization?

Yes — closing a card reduces your total available credit and can spike utilization overnight, even if your balances haven't changed.

Free Credit Tool

Credit Utilization Calculator

Enter your total credit limit and current balances to see your utilization ratio and estimated score impact in real time.

Total Credit Limit ($)

Current Balances ($)

Current Utilization35.0%

Status

High

Recommended Target

Under 10%

To hit the optimal range, pay down

$3,500

Major score drag. Reducing to under 30% can recover 20–60 points.

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Frequently Asked Questions

More Free Credit Tools

Credit Utilization Calculator →Collection Impact Calculator →Debt-to-Credit Ratio Calculator →Late Payment Recovery Timeline →

Educational resources only. Strategic Credit Institute provides consumer-law-based credit education and is not a credit repair organization or law firm. Nothing here is legal, financial, or tax advice. Individual results depend on your unique credit profile and effort — we make no guarantees of specific score changes, deletions, or funding outcomes.

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