What Is Credit Utilization?
How much of your credit card limit you are using, shown as a percentage: your card balance divided by your credit limit.
Utilization compares what you owe on revolving accounts, mainly credit cards, with the total limit on them. A $300 balance on a $1,000 limit is 30% utilization. Scoring models look at it card by card and across all your cards together.
In FICO scoring, "amounts owed" makes up about 30% of the score, and myFICO says utilization matters more than the raw size of your debt. The popular "stay under 30%" line is a rule of thumb, not a cliff: myFICO says its data doesn't show scores dipping the moment you cross 30%, and that keeping utilization below 10%, while paying on time, can help you build a good score. It also says 0% isn't the goal, because it gives the score less to go on. These are US FICO rules; other countries score credit differently.
You already owe $150 on a card with a $500 limit, then add a $70 game and a $30 battle pass. That's $250 of $500, or 50% utilization, even if you plan to pay it all when the statement arrives.
Key points
- Card balances ÷ credit limits, per card and overall.
- Lower is better; 30% is a rule of thumb, not a hard line.
- Paying the balance down lowers it again.
Put it to use
Sources myFICO: Credit score factor, amounts owedmyFICO: What should my credit utilization ratio be? Checked October 2026. Rules and fees vary by issuer and country; your card agreement has the final word.
Carrying a balance? Put every card and plan in one place, then pick a payoff order.