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How to Manage Your Credit Card Utilization for a Better Score

How to Manage Your Credit Card Utilization for a Better Score

Your credit card utilization rate has a direct impact on your credit score. Credit bureaus like FICO and VantageScore consider 30% or less ideal. Maintaining a 30% or less balance of your total available credit will positively impact your credit score. On the other hand, if you utilize more than 30% of your available credit, it can negatively affect your score. This is because creditors see high utilization as an indicator that you are highly leveraged and may struggle to manage debt.

Tips for Maintaining a Low Credit Card Utilization

Pay your balance in full each month.

Paying off your monthly credit card balance will help keep your utilization low and prevent it from negatively affecting your score.

Make multiple payments throughout the month.

If you aren’t able to pay your balance off in full each month, try breaking up your payments into two or more parts throughout the billing cycle. This will help keep your utilization low and prevent it from spiking at the end of the month.

Monitor your credit card usage regularly.

Maintain a modest credit utilization rate and consistent monitoring of your credit report. Take preventative measures if it rises above 30%.

Negotiate a higher credit limit.

A higher credit limit will help keep your utilization ratio low and can help improve your credit score over time. You can call your card issuer or ask for an increase online.

Consider balance transfer cards.

Some balance transfer cards offer a 0% introductory APR for some time, allowing you to move your balances from other higher-interest rate cards and give yourself some breathing room. Just monitor the balance transfer fees and ensure you’ll save money.

By managing your credit card utilization, you can ensure that you take full advantage of the benefits of having a credit card while avoiding any potential negative impacts on your overall financial health. By following these tips and staying vigilant, you can maintain a low credit card utilization rate and benefit from a better score over time.


If you care about your credit score and financial future, you must proactively manage your credit card utilization. Consult a credit counseling service or a financial planning agency if you can’t get a handle on how much you’re spending on your credit cards. The Oasis Firm is one such firm that can provide guidance and support in managing your finances and improving your credit score. We have the knowledge and tools to assist you in creating a strategy to control your credit card debt and move you closer to your financial objectives. utilization

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