How to Use Credit Cards to Improve Your Credit Score (15 Steps)

3. Keep Your Credit Utilization Below 30%

Credit utilization refers to the percentage of your available credit that you’re using. For example, if you have a $1,000 credit limit and your balance is $500, your utilization is 50% — which is too high.

Experts recommend keeping your utilization below 30%, and ideally under 10% for the best scores.

Here’s how to manage utilization effectively:

• Make multiple payments each month. Don’t wait until the due date; pay off part of your balance mid-cycle to keep the reported balance low.
• Ask for a credit limit increase. If your limit goes from $1,000 to $2,000 and your spending stays the same, your utilization automatically improves.
• Avoid maxing out your card, even temporarily. High utilization can hurt your score even if you pay in full later.

You can track utilization in apps like Credit Karma or directly through your credit card’s online dashboard.