Credit utilization is the percentage of your available credit that you’re using. It’s calculated by comparing your current balance to your total credit limit.
As a general reference, some scoring models (such as FICO) consider this metric, and many people try to keep it below 30%. This doesn’t guarantee a specific score, since your credit score depends on several factors.
Example:
Total credit limit: $1,000
Current balance: $300
Utilization: 30%
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