Credit card balance

I believe the rule is less than 30% of your CL.

 

There are several posts about this topic, but yes I believe that is correct to maximize your score.

 

Forget what collectman says about percentages. FICO scoring is not one of his specialities

General rules: always stay below 50% util on any single account and accumulated utilization if maintaining a high FICO score is important.

30% is another cut off used by most FICO models
10% is another cut off
some say that 5% is yet another cut off

You can use more than this percentage of your credit limit, you just don't want to leave a balance more than these percentages when the card reports at the end of the billing and/or reporting cycle. Pay it down to the above percentages before the cycle ends. Depending on how important FICO scores are to you during that month, pay them down using the above general rules.

 

http://www.bankrate.com/brm/news/cc/20061114_cancel_card_credit_scorea.asp

Thank you very much.

 

Of course, it's not simply a matter of having diverse sources of credit. They also want to see responsible credit usage on your part, including credit card balances in the healthy 30-percent-to-35-percent range. "That's a sign of an active and responsible credit person," Burns says. "On the other hand, if somebody consolidates their credit cards or revolving credit down to just a handful of credit sources and has high utilization rate, that will be detrimental to their score."

 

5. Never max out a card. This is, of course, a good strategy to avoid getting in over your head in the first place. But it can also salvage your credit history. According to Fair Isaac, a credit scoring bureau, about one-third of your score depends upon your "utilization ratio," or how much of your available credit you actually use. Experts recommend that you keep your balance below 30%, or $300 for every $1000 of available credit. If you're currently maxed out, try to get your ratio down into the safety zone as soon as possible. That ratio matters both for the sum of your available credit and for each individual card you own. You want to keep your balance below that magic line at all times -- even if you pay your cards off in full each month.

http://www.kiplinger.com/features/archives/2007/02/ccmoves.html

 

Remember that credit is a financial tool, credit scoring gauges how well you manage that tool.

My point being, do not obsess over your utilization of available credit until you need to apply for more credit. As a rule of thumb, if you keep your utilization below the national avergae of 40%, your doing okay. To maximize your credit scores follow some of the above ranges. If you can stay below 30% that's great. If you can stay below 15%, that's even better.

Remember, your FICO score is only a factor when you apply for credit. It is a great idea to manage it, but the main objective is to improve your credit to make your life better. Just be aware that you need to get your utilization as low as possible when you plan to apply for more credit. Please note that the word "plan" was intentional. Managing your credit means looking ahead to predict your needs, and tailoring your situation to that plan.

So, use your credit to best suit your needs.