What is credit utilization and what target is commonly recommended?

• A. Utilization is the number of credit inquiries; target is below 1.
• B. Utilization is the current balance divided by the credit limit, and the commonly recommended target is below 30%, ideally under 10%.
• C. Utilization is income-to-debt ratio; target below 50.
• D. Utilization is the number of open accounts; target below 5.

Answer: (B)