What is a recommended credit utilization ratio on revolving credit cards to maintain a strong score?

• A. Keep utilization under 30% (preferably under 10%)
• B. Keep utilization around 70%
• C. Keep utilization under 90%
• D. Keep utilization around 50%

Answer: (A)

Credit utilization on revolving credit cards is a major factor in your credit score. It’s the percentage of your available credit that you’re using when your issuer reports your balance. Keeping this ratio low signals you’re not overextending yourself, and most scoring models reward that discipline. The recommended guideline is to keep utilization under 30% (preferably under 10%), because the lower the reported balance relative to your limits, the stronger your score tends to be. Utilization matters both overall and on each individual card, so paying down balances before the statement closes and avoiding high balances on any single card helps you maintain a stronger score. If needed, consider asking for higher credit limits or regularly paying down balances to keep utilization in that safe range.