Credit Utilization Calculator
Calculate your credit utilization ratio and see how it impacts your credit score. Get instant recommendations to improve your credit health.
Credit Utilization Calculator
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Your Credit Utilization
How Credit Utilization Works
📊 What is Credit Utilization?
Credit utilization is the ratio of your credit card balances to your credit limits, expressed as a percentage. It's one of the most important factors in your credit score, accounting for approximately 30% of your FICO score.
Formula: (Total Balance ÷ Total Credit Limit) × 100
🎯 Ideal Utilization Ranges
- 0-10%: Excellent - Best for maximizing credit score
- 10-30%: Good - Healthy range, won't hurt your score
- 30-50%: Fair - Starting to impact score negatively
- 50%+: Poor - Significantly hurting credit score
💡 Why the 30% Rule Exists
Credit bureaus and lenders view utilization above 30% as a sign of financial stress. Even if you pay on time, high utilization suggests you're relying heavily on credit, which increases lender risk.
Per-Card Utilization
Keep each individual card below 30%. Having one card maxed out hurts your score even if your overall utilization is low.
Overall Utilization
Your total balance divided by total limit across all cards. This is what credit bureaus look at most.
⚠️ Reporting Date Matters
Credit card companies typically report your balance to credit bureaus on your statement closing date, not your payment due date. To optimize your utilization, pay down balances before the statement closes, even if the payment isn't due yet.
Frequently Asked Questions
What credit utilization is best for my credit score?
The ideal credit utilization is below 10% for maximum credit score benefit. While the commonly cited 30% threshold is good, people with the highest credit scores (800+) typically maintain utilization below 10%.
A 2021 study by FICO found that consumers with scores above 800 had an average utilization of just 7%. However, don't aim for 0% — using your cards and paying them off shows active credit management.
How much does credit utilization affect my score?
Credit utilization accounts for approximately 30% of your FICO score, making it the second-most important factor after payment history (35%).
The good news: utilization has no memory. Unlike late payments that stay on your report for 7 years, your score can improve immediately when you pay down balances. This makes it one of the fastest ways to boost your credit score.
Does closing a credit card help or hurt utilization?
Closing a credit card hurts your utilization ratio by reducing your total available credit.
Example: If you have $5,000 in balances and $20,000 in total limits (25% utilization), closing a card with a $5,000 limit increases your utilization to 33% ($5,000 ÷ $15,000), which can lower your score.
Better strategy: Keep old cards open (especially with no annual fee) and use them occasionally for small purchases to maintain the available credit.
How to calculate credit utilization for multiple cards?
Credit bureaus look at both your overall utilization and per-card utilization:
Overall Utilization:
(Total balance across all cards) ÷ (Total credit limit across all cards) × 100
Per-Card Utilization:
(Individual card balance) ÷ (Individual card limit) × 100
Use our calculator above to track both metrics across all your cards for a complete picture.
Should I request a credit limit increase to improve utilization?
Requesting a credit limit increase can be a smart strategy to lower your utilization ratio, but consider these factors:
- ✓ Soft inquiry: Many issuers offer automatic increases with no credit check.
- ⚠ Hard inquiry: Some may do a hard pull, which can temporarily lower your score 5-10 points.
- ✗ Spending risk: Only works if you don't increase spending with the higher limit.
Best practice: Ask your issuer if they can increase your limit without a hard inquiry. Many will if you have a good payment history.