How Much Of My Credit Card Should I Use?

Understanding how much of your credit card limit to use can help you manage your credit more effectively.

Using too much of your available credit may signal to lenders that you rely heavily on borrowing, while using a smaller portion can show consistent and controlled credit use. The amount you use, often referred to as your credit utilization rate, is one of the factors credit scoring models consider when evaluating your credit profile.

Read on for details on how much of your credit card you may want to use and how it could potentially affect your credit score.

Key points

• Credit utilization, or the percentage of your available credit that you are using, is a major factor in credit scores and makes up about 30% of a FICO® Score calculation.
• Keeping credit utilization below 30% is commonly associated with stronger credit scores, while consumers with the highest scores often maintain rates in the single digits, around 4–7%.
• You do not need to carry a balance or pay interest to build credit. Using your card regularly and paying the balance in full each month can demonstrate responsible credit management without added cost.

What does “how much of my credit card should I use” mean?

When asking how much of your credit card you should use, what you are really asking about is credit utilization. This term refers to how much credit you’re using divided by the total amount of revolving credit you have available.^[1]

How much of your credit you use is a factor in how credit scoring models assess your borrowing habits.^[2] Read on for the definition of credit utilization, how it’s calculated, and what counts towards your credit utilization rate (CUR).

What is credit utilization and how is it calculated?

Credit utilization is the percentage of your available revolving credit that you are using at a given time. It’s often called your credit utilization ratio or credit utilization rate (CUR).

To find your utilization rate, divide your total credit card balances by your total credit limits and multiply by 100 to get a percentage. For example, if you have $1,000 in balances across all your credit cards and $5,000 in total credit limits, your utilization rate is 20%.

Credit scoring models such as FICO® and VantageScore® use this figure to understand how you manage credit. A lower utilization rate suggests you are managing debt responsibly, while a higher rate may indicate that you are relying more on credit to cover expenses. Keeping your utilization low can help you maintain a healthier credit score over time.^[1]

How credit utilization is calculated

Credit utilization can be measured in two ways:

• Overall utilization: The total of all your credit card balances divided by the total of all your credit limits.
• Per-card utilization: The balance on each individual credit card divided by that card’s credit limit.
  Both measurements may affect your credit score because most scoring models consider how much of your available credit you use across all accounts, as well as how much you use on each individual card.

The balance used to calculate utilization is usually the amount reported to the credit bureaus at the end of your billing cycle. This may not match the balance shown in your online account at a given moment. Even if you pay your balance in full each month, a balance may still appear on your credit report if purchases were made before your statement closing date.

Monitoring how much of your available credit is being used can help you understand how this factor is represented in your credit reports and scores over time.^[3]

What counts towards utilization

Credit utilization only includes revolving credit accounts, which allow you to carry a balance and borrow again as you repay.

According to FICO, the accounts that typically count toward your credit utilization ratio are:

• Credit cards, including accounts you open yourself and accounts where you are listed as an authorized user.
• Revolving lines of credit, such as personal or other open-ended credit accounts that appear on your credit report.

Certain accounts do not count toward credit utilization because they are not revolving credit. These include:

• Charge cards, which must be paid in full each month.
• Debit cards, which are linked to checking accounts and do not involve borrowed credit.

Knowing which accounts are included helps clarify how your credit utilization ratio is calculated and which balances may influence your credit score.^[4]

How much of my credit card should I use?

While there’s no specific point when your CUR goes from good to bad, there are percentages that may have a negative effect on your credit score.^[1]

FICO explains that the “amounts owed” category, which includes credit utilization, makes up about 30% of a FICO Score. Using a lower percentage of your credit limit can show that you are managing credit responsibly, while consistently high balances may suggest higher credit risk.^[5]

Many credit experts suggest keeping your overall utilization below 30%, which is often considered a reasonable target. Experian notes that consumers who maintain utilization below this level tend to have stronger credit scores.^[1] However, FICO data shows that people with the highest scores typically have much lower utilization rates. In its 2023 analysis of consumers with perfect 850 scores, FICO reported an average utilization of around 4%.^[6]

VantageScore has also stated that lower utilization is generally viewed positively, but a rate of 0% is not ideal, since lenders and scoring models need to see some activity to evaluate how you use credit.^[7]

In practice, keeping your utilization in the single digits may help support excellent credit over time, while maintaining it below 30% may help you avoid potential score reductions.

How your credit utilization affects your credit score

Credit utilization plays a significant role in how credit scoring models assess your borrowing habits. Both FICO® and VantageScore® include utilization as part of the “amounts owed” category, which accounts for roughly 30% of a FICO Score.^[5]

This category reflects how much of your available revolving credit you’re using compared to your total credit limits. A lower utilization rate generally shows that you’re managing credit responsibly, while a higher utilization rate may suggest that you’re more reliant on borrowed funds.

According to the Consumer Financial Protection Bureau (CFPB), how much of your available credit you use can influence your credit score because it helps lenders understand your ability to manage credit and debt over time.^[2] Both your overall utilization and the utilization on individual credit cards can be considered in credit scoring models.

It’s important to note that utilization is just one part of your credit score, along with other factors such as payment history, credit age, and new credit inquiries. Keeping utilization at a lower percentage can support your score, but it works best alongside a consistent record of on-time payments and responsible account management.

How much credit should I use?

Using less of your available credit may be better for your credit score when looking at the correlation from Experian’s report. While there’s no specific percentage where your utilization rate goes from good to bad, higher rates can have a more noticeable negative effect on your credit score.

Experian data from the third quarter of 2024 shows that consumers with higher credit scores tend to have much lower average utilization rates.

Average Credit Utilization by FICO® Score Range (Q3 2024):

• Poor (300–579): 80.7%
• Fair (580–669): 61.4%
• Good (670–739): 38.6%
• Very good (740–799): 15.2%
• Exceptional (800–850): 7.1%

The national average utilization rate across all consumers was 29% in Q3 2024. This data highlights that lower utilization is typically linked with stronger credit scores.
However, a 0% utilization rate isn’t ideal. Credit scoring models need to see some activity to assess how you manage credit, so using a small portion of your available limit and paying it off regularly can help demonstrate responsible credit behavior.^[1]

Should you keep a balance on a credit card?

Leaving a balance on your credit card does not help your credit score. Credit scoring models do not reward you for paying interest or carrying debt. They measure how much of your available credit you use, known as your credit utilization rate, along with how consistently you make on-time payments.

Paying your balance in full each month can still show positive account activity. Card issuers report your balance and payment history to the credit bureaus, even if you pay off your full statement balance before it accrues interest. This means you can demonstrate responsible credit use without carrying a balance.

Keeping your accounts active, using them responsibly, and paying them off in full can help you maintain a healthy credit utilization rate without ongoing debt.

Should you close a credit card?

Closing a credit card can affect your credit score because it changes your total available credit and the length of your credit history. When you close a card, your overall credit limit decreases while any balances on other cards remain the same. This can raise your credit utilization rate, which may have a negative effect on your score.

FICO explains that even if your spending stays the same, closing a card can increase your utilization percentage because your total available credit becomes smaller.^[8] Experian also notes that closing a card could shorten your credit history and remove an account that contributes to your available credit, both of which can influence your credit score.

Before deciding to close a card, consider how the account fits into your credit mix and your available limits. In some cases, keeping a card open with a zero balance can help maintain both a lower utilization rate and a longer credit history.^[9]

Sources

1. Experian. “What Is a Credit Utilization Rate?” https://www.experian.com/blogs/ask-experian/credit-education/score-basics/credit-utilization-rate/. Accessed October 17, 2025.
2. Consumer Financial Protection Bureau. “What Is a Credit Score?” https://www.consumerfinance.gov/ask-cfpb/what-is-a-credit-score-en-315/. Accessed October 17, 2025.
3. Experian. “How to Calculate Credit Card Utilization,” https://www.experian.com/blogs/ask-experian/how-to-calculate-credit-card-utilization/. Accessed October 17, 2025.
4. myFICO. “Understanding Accounts That May Affect Your Credit Utilization Ratio,” https://www.myfico.com/credit-education/blog/accounts-credit-utilization-ratio. Accessed October 17, 2025.
5. myFICO. “What’s in Your Credit Score?” https://www.myfico.7com/credit-education/whats-in-your-credit-score. Accessed October 17, 2025.
6. FICO. “The Perfect Credit Score: Understanding the 850 FICO Score,” https://www.fico.com/blogs/perfect-credit-score-understanding-850-fico-score. Accessed October 17, 2025.
7. VantageScore. “The Complete Guide to Your VantageScore,” https://vantagescore.com/consumers/blog/the-complete-guide-to-your-vantagescore/. Accessed October 17, 2025.
8. myFICO. “How Closing a Credit Card Account Can Impact Your Credit Score,” https://www.myfico.com/credit-education/faq/cards/impact-of-closing-credit-card-account. Accessed October 17, 2025.
9. Experian. “Will Closing a Credit Card Hurt Your Credit?” https://www.experian.com/blogs/ask-experian/will-closing-a-credit-card-hurt-your-credit/. Accessed October 17, 2025.