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Credit Scores & Reports

How to lower credit utilization the smart way

Cut credit utilization without closing accounts—timing tricks, payment strategy, and limit management.

Tactics

  • Multiple payments per month so statements report low balances.
  • Spread balances across cards; avoid any card >30% (ideally <10%).
  • Ask for higher limits (soft pull preferred).
  • Keep old cards open to preserve total available credit.
  • Time large purchases after the statement date so they don't report.

Do not

  • Close your oldest credit card just to "clean up."
  • Max out cards—even briefly—before a major loan application.

Frequently Asked Questions

What's the best utilization percentage?

Under 10% overall, with no individual card over 30%.

When should I pay my credit card?

Before the statement date to report lower balances, but keep one card with small usage.

Will asking for credit increases hurt my score?

Ask if it's a soft pull first. Hard pulls may lower score temporarily but increase available credit.