Episode Summary In this episode of Small Business Credit Minute w/ S.E. Day™, Sandy explains why many business owners are unintentionally damaging their credit profile by allowing high credit card balances to report, even when they pay the cards in full by the due date. The episode breaks down credit card utilization, why statement closing dates matter, how reported balances can affect personal and business credit profiles, and why high utilization can become a lender-readiness problem before a business applies for funding. Key Takeaways Credit card utilization is calculated by dividing the reported balance by the credit limit. Paying by the due date may avoid late fees and interest, but it does not guarantee that a low balance will report. Business owners should know their statement closing dates, payment due dates, and reporting patterns. High utilization can make a business look overextended, even if payments are on time. Before applying for funding, business owners should manage reported balances for at least 60 to 90 days. Call to Action Before applying for business credit, a business line of credit, SBA lending, or growth capital, review your utilization strategy. Visit FSBOnly.com to learn more about business credit education, lender-readiness, and the FSBO Academy pathway. Qualify First. Apply Second.