The video is recommending that you keep your credit utilization below 30%.

In practical terms, that means you should be using no more than 30% of your available credit limit at any given time. If your total credit limit is $10,000, the guidance is to keep your balances under $3,000.

Many videos add that lower is better, often mentioning 10% or less as an ideal target-but 30% is the clear cutoff the video is warning people not to exceed.

This question is trending because short-form finance videos-especially on YouTube Shorts, Instagram Reels, and TikTok-are heavily focused on credit score “rules”. Credit utilization is easy to explain, easy to visualize, and easy to turn into a warning-style soundbite.

As these videos spread globally, viewers are searching to confirm one specific detail:
“What exact number did the video say?”

What’s Confirmed vs. What’s Unclear

Confirmed:

  • Credit utilization is a major factor in most credit scoring models.
  • Staying below 30% is widely accepted as a safe threshold.
  • Lower utilization generally correlates with higher credit scores.

Unclear or Variable:

  • Whether the video meant “never exceed 30%” or “aim far lower when possible.”
  • How often utilization is measured (statement balance vs. daily balance).
  • How much benefit someone gets by going from 30% down to 10%.

What People Are Getting Wrong

Several misunderstandings commonly follow these videos:

  • “30% is optimal.”
    It is not. It is a maximum guideline, not a target.

  • “Going over 30% once ruins your credit.”
    It does not. Utilization resets as balances change.

  • “Utilization only matters if you carry debt long-term.”
    False. Even short-term balances can be reported and affect scores temporarily.

Real-World Impact (Everyday Scenarios)

Scenario 1: A normal card user
Someone with a $5,000 limit carries a $2,000 balance (40%). Their score dips. They pay it down to $1,000 (20%), and their score rebounds within one or two billing cycles.

Scenario 2: A business or freelancer
A freelancer uses a credit card heavily for expenses and crosses 30% regularly. Even if they pay in full, high reported utilization can suppress their score when applying for a loan or mortgage.

Benefits, Risks & Limitations

Benefits of staying under 30%

  • Protects your credit score from unnecessary drops
  • Signals lower risk to lenders
  • Requires no complex strategy-just balance awareness

Risks or limits

  • Staying under 30% does not guarantee a high score
  • Income, payment history, and account age still matter more
  • Obsessing over daily balances can be counterproductive

What to Watch Next

If you want to go beyond the video’s advice, pay attention to:

  • Statement closing dates, not just payment due dates
  • Total utilization across all cards, not just one
  • Whether your score model is FICO, VantageScore, or lender-specific

What You Can Ignore Safely

  • Claims that 29% is “perfect”
  • Fear-based statements that crossing 30% once causes lasting damage
  • Advice that ignores income, payment history, or credit mix

Is 30% a rule or a suggestion?
It is a guideline, not a hard rule.

Is 10% better than 30%?
Usually yes, but the improvement is incremental, not dramatic.

Does paying in full cancel utilization impact?
Only if the balance is reported after payment. Timing matters.