Credit utilization is your account balance divided by your credit limit. It is typically calculated as the percentage (%) of your credit limit you are using on the statement date of your account.

Example: Current Balance $300 / Credit Limit $1,000 = 30% Credit Utilization  

Within days of opening your Revolv account, we begin reporting a $1,000 bank-issued revolving credit account to all three major credit bureaus with an account balance of $0. This new account will ‘instantly’ lower your overall credit utilization.

Example: You have a credit card with a $800 balance and $2,000 credit limit ($800 balance / $2,000 limit = 40% utilization. When Revolv. is added to your credit profile, your total credit limit will increase by $1,000 to $3,000 and your credit utilization will drop to 27% ($800 balance / $3,000 limit) – which should ‘instantly’ improve your credit score. 

Optimal credit utilization is between 2% and 9%.

Credit utilization ranges from 0% to 100%. 30% – 100% credit utilization is bad and will lower your credit score. Going above 50% can dramatically lower your score.

10% – 30% or 0% is OK. It won’t hurt your credit score, but it won’t optimize your credit score.

To optimize your credit score you want to use about 2% to 9% of your credit limit every month while making on-time payments. This shows that you are using your available credit in a responsible manner and don’t NEED to draw on a large amount of your available credit.

Revolv allows you to set up monthly savings payments. We help you set these payments for between 2% and 9% of your Revolv credit limit ($20/mo to $90/mo). When you make these monthly savings payments on-time, you optimize your credit utilization and build payment history.

100% of your monthly savings payments build your savings.