What level of credit utilization is generally recommended for an optimal score?

• A. Under 30% (preferably under 10%)
• B. Over 50%
• C. Around 80%
• D. Around 100%

Answer: (A)

Credit utilization is the portion of your available revolving credit that you’re using. Keeping this ratio low matters because it signals to lenders that you manage credit responsibly and aren’t relying on high balances to cover expenses. A common target is to stay well under a third of your total available credit, with many advisers aiming even lower for the strongest scores. When you use a large share of your credit, especially close to the limit, it can lower your score because it suggests higher risk or that you might struggle to pay down balances. So, the best approach for an optimal score is to keep utilization as low as possible overall.