📊 Credit Utilization Calculator
Calculate your credit utilization ratio
Total balance across all credit cards
Total credit limit across all credit cards
How to Use This Calculator
Enter Total Balance
Input the total balance across all your credit cards. This is the amount you currently owe.
Enter Total Credit Limit
Enter the total credit limit across all your credit cards. This is the maximum amount you can borrow.
Review Utilization Ratio
See your credit utilization ratio, which shows what percentage of your available credit you're using. Lower is generally better for your credit score.
Formula
Credit Utilization Ratio = (Total Balance ÷ Total Credit Limit) × 100
Example Calculation:
If total balance is $3,000 and total credit limit is $10,000:
• Utilization = ($3,000 ÷ $10,000) × 100 = 30%
• This is considered good utilization (under 30%)
About Credit Utilization Calculator
A credit utilization calculator helps you understand your credit utilization ratio, which is the percentage of your available credit that you're currently using. Credit utilization is one of the most important factors affecting your credit score, accounting for about 30% of your FICO score. Lower utilization (typically under 30%, and ideally under 10%) is better for your credit score. This calculator shows your utilization ratio and its impact on your credit score.
When to Use This Calculator
- Credit Score Management: Monitor and improve your credit utilization
- Credit Planning: Plan credit card usage to maintain good utilization
- Credit Score Improvement: Understand how to improve your credit score
- Debt Management: Manage credit card balances effectively
Understanding Credit Utilization
- Definition: Percentage of available credit being used
- Impact: Accounts for ~30% of FICO credit score
- Optimal Range: Under 30% (ideally under 10%)
- Calculation: Total balance ÷ Total credit limit × 100
- Per Card vs. Overall: Both individual card and overall utilization matter
Why Use Our Calculator?
- ✅ Quick Calculation: Instantly see your utilization ratio
- ✅ Credit Score Impact: Understand impact on credit score
- ✅ Guidance: See recommended maximum utilization
- ✅ Planning: Plan credit usage to optimize credit score
- ✅ 100% Free: No registration or payment required
Tips to Improve Credit Utilization
- Pay Down Balances: Reduce credit card balances to lower utilization
- Request Credit Limit Increase: Higher limits (without increasing spending) lower utilization
- Pay Multiple Times Per Month: Keep balances low when statement closes
- Keep Cards Open: Closing cards reduces available credit, increasing utilization
- Spread Spending: Use multiple cards to keep individual utilization low
Frequently Asked Questions
What is a good credit utilization ratio?
A good credit utilization ratio is under 30%, and an excellent ratio is under 10%. The lower your utilization, the better for your credit score. Most experts recommend keeping utilization below 30% to maintain a good credit score.
How does credit utilization affect my credit score?
Credit utilization accounts for about 30% of your FICO credit score, making it one of the most important factors. Lower utilization shows you're not overextended and can manage credit responsibly. High utilization (over 30%) can significantly lower your credit score.
Does utilization matter per card or overall?
Both matter! Credit scoring models consider both your overall utilization (across all cards) and per-card utilization. Even if your overall utilization is good, having one card maxed out can hurt your score. Aim to keep both overall and individual card utilization below 30%.
How can I lower my credit utilization?
You can lower utilization by: (1) Paying down credit card balances, (2) Requesting credit limit increases (without increasing spending), (3) Paying multiple times per month to keep balances low, (4) Keeping cards open to maintain available credit, (5) Using multiple cards to spread out utilization.