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EducationAug 24, 2026

Credit utilization, explained

Why the balance on your card matters even when you pay in full.

A young woman checking her credit score on her smartphone at home

Credit utilization is the share of your available credit that you are using. Scoring models commonly look at the balance reported on your statement, not the amount you pay by the due date.

If you use a card heavily, make a payment before the statement closes so the reported balance is lower. Keeping utilization under 30% is a common target, and lower is usually better.

Your credit center shows utilization for every card.