What utilization is
Utilization is how much of your revolving credit you're using: total card balances divided by total card limits. If you owe $1,500 across cards with $5,000 in limits, your utilization is 30%.
It's calculated two ways — overall, and per card. A single maxed-out card can hurt even if your overall number looks fine, so watch both.
The 30% rule — and why lower is better
'Keep it under 30%' is a floor, not a target. People with the highest scores typically sit in the low single digits. Under 10% is a meaningfully better place to be than 29%.
Zero isn't the goal either — reporting a tiny balance (a few percent) can look slightly better than reporting nothing at all on every card.
Timing: the trick most people miss
Your issuer reports your balance once a month, usually on the statement closing date — not the due date. The balance on that closing date is what the bureaus see.
So you can pay a card down before the statement closes and a lower balance reports, even if you use the card heavily. Paying after the statement closes helps next month, not this one.
Raise the denominator
Because utilization is balance ÷ limit, raising your limit lowers utilization instantly — no payment required. Ask for a credit-limit increase on a card you've paid well (many issuers do a soft pull), and don't let the extra room tempt you into spending more.
Utilization is the fastest lever precisely because it resets every cycle. Subefy watches your reported balances across all three bureaus and flags when utilization is about to spike. Results vary and no specific score change is guaranteed.