Current Utilization
0%
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The 30% Rule is a Lie (Sort of)
You've probably heard that you should keep your credit card balance below 30% of your limit. While that's "okay," it won't give you an 800+ credit score.
To get the best score possible, you need to be below 10%.
Credit Utilization accounts for 30% of your FICO score. It is the second most important factor after Payment History. The lower your utilization, the less "risky" you look to lenders.
How to Hack Your Utilization
- The "AZEO" Method: "All Zero Except One." Pay off all your cards to $0 before the statement date, except for one card where you leave a tiny balance (like $10). This shows usage but keeps utilization near 0%.
- Request a Limit Increase: If you can't pay down the debt, ask for a higher limit. If your limit goes up, your utilization % goes down automatically.
Common Questions
Does 0% utilization hurt my score?
Sometimes. If all your cards report $0, it looks like you aren't using credit at all. It's better to have 1% utilization than 0%.
When does utilization update?
Usually on your statement closing date. If you pay off your full balance after the statement is generated, the high balance has already been reported to the bureaus.