Credit utilization definitely contributes to your score, however your example doesn't comport with that. In your example, if you close that card, your score is likely to go down, as the total credit available to you goes down. If you're paying off $100 each month on that card, your score will continually creep up. At some point, the credit card company will probably increase your limit to $2000, at which point your score will again go up. It's on you not to spend more than you can afford or fall into all the debt traps our society has set for us, but as long as you're paying it reliably your score will creep up