Credit Utilization Calculator
Calculate your credit utilization ratio and its impact on your credit score
Your Credit Lines
Credit Utilization Summary
Enter your credit card balances and limits to calculate your utilization ratio
Credit Score Impact Scale
Outstanding credit management - maximizes credit score
Good credit management - positive impact on score
Moderate risk - consider reducing balances
High risk - significantly impacts credit negatively
Very high risk - major negative impact on credit
Credit Utilization Tips
Keep It Low
Aim for under 30%, ideally under 10% for the best credit score
Pay Before Statement
Pay down balances before your statement closes
Increase Limits
Request credit limit increases to lower your ratio
Don't Close Cards
Keep old cards open to maintain your total available credit
Why Track Utilization?
Credit Score Impact
30% of your credit score is based on utilization
Loan Approvals
Lenders check utilization for mortgage and loan decisions
Budget Management
Track spending across all credit lines
Limit Optimization
Determine if you need higher or lower limits
Understanding Credit Utilization
What is Credit Utilization?
Credit utilization is the percentage of your available credit that you're currently using. It's calculated by dividing your total credit card balances by your total credit limits.
Formula:
Credit Utilization = (Total Credit Used ÷ Total Credit Limit) × 100
Example Calculation
Card 1: $1,400 used / $4,000 limit
Card 2: $1,100 used / $4,000 limit
Card 3: $2,500 used / $7,000 limit
Total: $5,000 used / $15,000 limit = 33.3%
Impact on Credit Score
- ✓30% of Credit Score: Utilization is the second most important factor
- ✓Individual & Overall: Both per-card and total utilization matter
- ✓Quick Impact: Changes appear on your credit report within 30 days
- ✓No Memory: Past high utilization doesn't hurt if you improve it
Best Practices
- • Keep overall utilization below 30%
- • Aim for 1-9% for excellent scores
- • Keep individual cards below 30%
- • Pay multiple times per month
- • Request credit limit increases
Calculate Total Balances
Add up balances from all credit cards and lines
Calculate Total Limits
Add up credit limits from all accounts
Divide and Multiply
Divide balances by limits, multiply by 100 for percentage