What is typically considered a low credit utilization percentage by lenders?

Lenders often consider a credit utilization percentage below 30% as favorable. This metric reflects how much of your available credit you are using at any given time. A lower percentage is typically viewed positively, indicating to lenders that you are managing your credit responsibly and are less likely to overextend yourself financially. Generally, staying below this threshold can help maintain a healthy credit score, which is crucial for accessing loans and favorable interest rates. Using more than 30% of your available credit can signal a higher risk to lenders, potentially leading to a negative impact on credit scores.