# Credit Utilization

*Borrowing & Credit — Finicade finance glossary*

Credit utilization is the share of your available revolving credit you're currently using, and it drives roughly 30% of a FICO score. Below 30% is the common advice; below 10% scores best. The mechanic that catches people out is timing: most issuers report the statement balance, not the balance after you pay, so paying in full every month can still register 60% utilization. Paying down before the statement date fixes it.

**Formula:** `Utilization = Statement balances ÷ Total credit limits`

**Also known as:** utilization ratio, credit utilisation, balance to limit ratio

**Related terms:** [Credit Score](https://finicade.com/glossary/credit-score), [Credit Limit](https://finicade.com/glossary/credit-limit), [Credit Card](https://finicade.com/glossary/credit-card), [Revolving Credit](https://finicade.com/glossary/revolving-credit), [FICO Score](https://finicade.com/glossary/fico-score)

Source: https://finicade.com/glossary/credit-utilization