Credit utilization — how much of your available credit you're using — accounts for 30% of your FICO score. Unlike payment history (which takes years to rebuild), utilization can move in a single month. It's the most actionable lever for score improvement.
The 30% Myth
The old advice was "keep utilization below 30%." The reality is more nuanced: scores improve all the way down to 1–9% utilization. The biggest score jumps happen as you move from 30–50% down to under 10%.
How to Reduce It
Strategy 1: Pay down balances. If you owe $8,000 on a $10,000 credit limit, you're at 80% utilization — pay it to $1,000 and you're at 10%. This takes time if you carry large balances.
Strategy 2: Ask for a credit limit increase. If your income supports it, requesting a higher limit (without requesting more spending power) reduces your utilization ratio on the same balance. The issuer may do a soft pull — check your terms first. Hard pulls hurt your score 2–5 points temporarily.
Strategy 3: Become an authorized user. If a parent or spouse has an old card with a high limit and low utilization, being added as an authorized user lets their history benefit your score — even if you never use the card. Some issuers report authorized user history to all three bureaus. For ongoing monitoring and tracking utilization as you pay down balances, a credit monitoring service gives you real-time visibility into your score and utilization ratio.
The "AZEO" Trick
All Zero Except One (AZEO): Have one card report a small balance (1–5% of limit), all others report $0. Some scoring models give a slight boost to this pattern. It's not necessary — under 10% on all cards is sufficient — but it's a technique used by people optimizing for mortgage approval.