There is a lot of advice out there about keeping your credit card utilization above 0% but less than 20%. I'm currently carrying about 85% utilization on my card and have plans to lower it. How long will it take for my credit score to reflect a lower utilization? If I have no plans for a major purchase, should I be worried about utilization at all?
Your credit report has no historic utilization rates (although it will note the highest balance you have had on a particular line of credit). It only factors in the last reported statements from your creditors. The actual delay depends on a combination of the creditor and the reporting agency. It will usually range from 1-3 months. If you have no plans to have your credit pulled in the near future, your utilization rate should not be a major concern.