Credit experts question if keeping under 30% usage optimizes scores

A Google search may suggest keeping utilization at or under 30%, but Can Arkali from FICO stated that "there is nothing 'optimal or significant' about 30% credit card utilization." While lower rates are generally better for scores, staying below this threshold might not be sufficient for improvement.

VantageScore recommends maintaining levels at or below 30%, but Jeff Richardson noted that the impact varies depending on one's overall credit profile. He explained that "a person with many delinquencies might not be impacted by going over 30% as much as someone with a pristine record."

While low utilization rates are beneficial, having a 0% rate—indicating no usage—isn't ideal either. Arkali pointed out that "a low credit card utilization will have a more positive impact on your FICO Score than not using any of your available credit at all."

There isn't a perfect utilization ratio; aiming for around 1% could be beneficial but challenging to maintain consistently. Arkali mentioned that consumers with high scores use an average of 7% of their limits.

To reduce utilization rates effectively: pay full statement balances monthly; consider multiple payments per month; know statement closing dates; request higher limits without increasing spending.

In conclusion, while aiming for less than 30% can help improve scores slightly above higher thresholds, it's not set in stone as optimal. Consistently practicing good habits like timely full payments alongside low usage remains key in achieving high scores.