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LearnFAQDebt Management

What's the fastest way to reduce my credit utilization?

Answer

Utilization is the share of your available credit you're using, and it's the second-biggest factor in your score after payment history — so lowering it can lift your score within a single billing cycle. The quickest levers: pay down balances before the statement closing date (not just the due date), since the reported balance is what counts; make a mid-cycle payment to knock the balance down before it reports; and request a credit-limit increase, which raises your denominator without you spending more. Aim to keep both your overall and per-card utilization under about 30%, and ideally under 10% for top scores. Spreading a balance across cards or paying the highest-utilization card first can also help. Because issuers report monthly, a single well-timed payment can show up fast. To see exactly which payments move your number most, try wealthserene.com/tools/utilization-optimizer.

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