📊 Credit Utilization Calculator
One of the biggest factors in your credit score, right after payment history.
How This Is Calculated
Credit Utilization = Total Balance ÷ Total Credit Limit × 100. This is calculated both across all your cards combined and, separately, scoring models also look at each individual card's utilization — maxing out even one card can hurt your score even if your overall utilization looks fine.
Frequently Asked Questions
What is a good credit utilization ratio?
Most scoring models reward keeping utilization under 30%, with under 10% often cited as ideal. This
applies both overall and to each individual card.
Guide: understanding your result
- Credit utilization = card balances ÷ credit limits. It is calculated for each card and across all cards.
- Lower utilization is generally viewed more favorably; under 30% is a common guideline and under 10% is often cited for the best results.
- Utilization is based on reported balances, which are usually the statement balance.
Worked example
Two cards with limits of $5,000 and $10,000 and balances of $1,500 and $1,000 have overall utilization of 16.7%, but the first card alone is at 30%.
Balance that equals 10% and 30% of a limit
| Credit limit | 10% utilization | 30% utilization |
|---|---|---|
| $1,000 | $100 | $300 |
| $5,000 | $500 | $1,500 |
| $10,000 | $1,000 | $3,000 |
| $20,000 | $2,000 | $6,000 |
Common mistakes to avoid
- Closing an old card, which lowers total available credit and can raise utilization.
- Paying in full after the statement date when the higher balance has already been reported.
Official sources
Examples are calculated live from the same data the calculator uses and are for education only — they are not financial, tax or investment advice.
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