Calculate your credit utilization ratio and understand how it impacts your credit score. Optimize your credit usage to improve your financial health.
Credit utilization is the ratio of your credit card balances to your credit limits. It's a key factor in calculating your credit score, accounting for about 30% of your FICO score.
A lower credit utilization ratio is better for your credit score. Experts recommend keeping your utilization below 30% to maintain a good credit score, and below 10% for an excellent score.