Credit utilization measures how much of your available credit you are currently using. At MoneyWellth, we recommend keeping your utilization below 30% whenever possible.
Some ways to lower your credit utilization include:
- Paying down existing credit card balances
- Making payments throughout the month instead of waiting until your due date
- Avoiding large purchases that significantly increase your balances
- Prioritizing payments on accounts with higher utilization percentages
The MoneyWellth Credit Utilization widget can help you identify which accounts contribute most to your overall credit utilization, so you can prioritize where to focus your payments.
If APR information is available, you can also compare interest rates across accounts. A higher APR means you'll pay more interest over time, giving you another way to decide which balances to pay down first.
As your balances decrease, your utilization percentage will also decrease once updated balance information is received from your financial institution.