The Asked

Chapter 03 — Money & Finance

What is credit utilization?

The percentage of your revolving credit you're using. Under 30% is fine, under 10% is optimal for your score. Utilization is calculated per card and overall, and it resets each statement — pay before the statement date to lower it.

Follow-up questions

Does paying twice a month help?

Yes — it keeps the reported balance low regardless of when the issuer sends data to bureaus.

Should I close old cards?

Usually no — it shortens your credit history and raises utilization by removing available credit.

How fast will my score change?

Utilization updates within a month of the new statement. Payment history takes longer to fix.

Do business cards count?

Most don't report to personal bureaus, which is why entrepreneurs use them to keep personal utilization low.

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