Middle Credit Score®

Utilization

Lenders treat utilization as a stability test — it reflects how financially strained or secure you appear when they evaluate your Middle Credit Score®.

Go to the Full Guide

Utilization signals financial stress levels

Lenders See High Balances as Warning Signs

Utilization doesn’t just reflect how much credit you’re using — it shows whether you appear stretched or financially pressured. High utilization signals instability, even if you’ve never missed a payment.

It’s a Predictor of Future Behavior

When balances are high relative to limits, lenders assume you are more likely to rely on credit to get through difficulty. This increases perceived risk, which is why utilization affects both score and pricing tiers.

Paying Down Debt Isn’t the Only Solution

Most consumers think lowering balances is the entire strategy — it isn’t. Strategic utilization is about changing your risk profile, not just lowering what you owe. The right distribution matters more than the raw number.