Beginner Guide · January 9, 2026

Credit Utilization: The Number That Matters Most

Credit Utilization: The Number That Matters Most

Credit utilization is 30% of your credit score—second only to payment history. Here’s how to optimize it.

What Percentage to Target

UtilizationScore Impact
0-10%Best
11-30%Good
31-50%Fair
51-75%Poor
76-100%Very Poor

Target: Under 30%, ideally under 10%

Utilization Has No Memory

Unlike late payments (7 years), utilization updates monthly. Fix it this month, your score improves next month.

Last updated: January 2026 Affiliate disclosure: ShortcutBest may earn a commission when you apply through our links.

Last updated: January 9, 2026

Affiliate disclosure: ShortcutBest may earn a commission when you apply through our links. This doesn't affect our recommendations — we only suggest cards we'd use ourselves.