What is the ideal utilization percentage of total available revolving credit to maintain a good credit score?

To maintain a good credit score, it is generally recommended to keep your credit utilization ratio around 30% of your total available revolving credit. This percentage is significant because credit utilization is a vital component of credit scoring models, contributing to about 30% of your overall credit score.

When you keep your utilization at or below 30%, it signals to creditors that you are not overly reliant on credit and are managing your credit responsibly. This healthy utilization level enhances the perception of creditworthiness and can positively impact your credit score, making it easier to obtain loans or additional credit when needed.

Utilization percentages above 30% can start to negatively affect your score as it may indicate that you are over-extended or relying heavily on credit. Keeping utilization significantly lower than this optimal threshold can further benefit your score, but 30% is considered a practical target for most individuals to strive for in order to maintain a favorable credit profile.