What is a utilization rate?
Updated over a week ago

A utilization rate is the amount of credit you’re using divided by the total amount of credit you have available.

For example, let’s say you’ve been approved for a tradeline (line of credit) for $100. If you choose to withdraw all $100 that you were approved for, your utilization rate is 100%. If you choose to withdraw only $20 from the available $100, then your utilization rate is 20%.

Which utilization rate should I choose?

When you use our Credit Building feature, you can select how much of your available credit to use. We recommend using only 1% to 10% of it. Our experts say that using more than 30% isn't as effective for improving your credit history, although it can still help, just not as much as using less.

How do I modify my utilization rate?

To adjust your utilization rate for Credit Building, follow these simple steps:

  1. Open the app.

  2. Tap on "Credit."

  3. Select "Manage Credit Building."

  4. Click on the three dots in the top right corner.

  5. Choose "View utilization."

  6. Then, click on the three dots in the top right corner again.

  7. Select "Change utilization."

Remember, you need to update your utilization rate every month because it resets to 0% on your billing date.

For Secured Credit Building, your utilization rate depends on how much money you've taken from your secure credit line funds.

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