What is credit utilization and why is it important?

Credit utilization measures how much of your revolving credit you’re using. Since it accounts for roughly 30% of your score, lower utilization generally means better credit health.

Can paying down within the billing cycle lower utilization faster?

Yes. Paying down balances before the statement closing date means a lower balance gets reported to the credit bureaus—improving your utilization ratio more quickly.

Will raising my credit limit hurt my score?

Requesting a limit increase can sometimes trigger a hard inquiry depending on the issuer, but it can lower utilization and improve your score over time if issued without overspending.

Should I close old unused credit cards?

Not usually. Closing older or zero-balance cards reduces your available credit and may raise your utilization ratio, which could hurt your score.

Is it possible to have too low utilization?

Zero utilization is okay, but a very low ratio (1%–5%) better demonstrates responsible use. Consistent usage and repayment over time is seen more favorably than no usage.

How often should I monitor my utilization?

Review your credit utilization monthly, especially before applications for loans or new credit cards. You can also set spending alerts to stay within your target threshold.

Jean-Maximilien Voisine

Jean-Maximilien Voisine is the President and Founder of Milesopedia and a leading expert in rewards programs, credit cards, and travel across Canada, France, and the U.S.A. Now 40 years old and a father of two, he has explored more than 100 countries—many of them alongside his wife Audrey and their children. Specializing in loyalty programs such as Aeroplan, Flying Blue, American Express Membership Rewards, and Marriott Bonvoy, Jean-Maximilien helps travellers unlock the full potential of their points and benefits. His mission: empower others to travel better and smarter across North America and Europe.

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