Credit utilization is the share of your available credit that you are currently using. Lenders and credit scoring models often pay close attention to this number, because it gives a quick snapshot of how heavily you are relying on revolving credit like credit cards.
Credit Utilization Calculator
How to use this credit utilization calculator
This calculator is designed to show your overall credit utilization in a simple, visual way. You can enter multiple credit cards and use the “Add another card” button to include more accounts, including the balance that appears on your statement and the credit limit for each card. The tool then adds everything together to show your total balances, total available credit, and overall utilization percentage.
Here is how each part works:
- Card balance ($): The amount you currently owe on that credit card. For the most accurate results, use the balance that appears on your most recent statement, not just what you remember spending.
- Credit limit ($): The maximum amount the card issuer allows you to borrow on that card. You can usually find this on your statement or in your online account.
- Overall credit utilization: The calculator divides the sum of your balances by the sum of your limits to get your utilization ratio.
- Balance for 30% overall utilization: This shows roughly how much total balance you could carry and still be at about 30% utilization given your current credit limits.
As you edit any number, the results update automatically. If something does not make sense, such as entering a balance but leaving that card’s limit at zero, the calculator shows an error message instead of a misleading result. You can also use the Reset button to return to a sample scenario.
Imagine you have three cards:
- Card 1: $1,500 balance and a $5,000 limit
- Card 2: $600 balance and a $4,000 limit
- Card 3: $0 balance and a $3,000 limit
Your total balances would be $2,100 and your total limits would be $12,000. That works out to an overall utilization of about 17.5%. If you paid Card 1 down by $500, your overall utilization would drop further, making your profile look less risky to many lenders.
What is a good credit utilization ratio?
There is no single magic number that guarantees a great credit score, but most credit experts agree on a few general guidelines. Utilization is only one part of your credit score, yet it is an important one, especially for FICO and similar models that emphasize how much of your available credit you are using.
Here is a simple way to think about utilization ranges:
| Utilization range | How it is often viewed |
|---|---|
| 0%–9% | Very low usage. Often seen as very conservative, though some lenders prefer to see a little activity. |
| 10%–29% | Generally considered a healthy range when you are focused on your credit scores. |
| 30%–49% | Higher-than-ideal utilization. May start to weigh more heavily on your scores. |
| 50% and above | High utilization. Can signal elevated risk and may make it harder to qualify for the best rates. |
Many people use 30% as a rule of thumb ceiling, while aiming even lower when possible. The lower your utilization, the more room you give yourself for unexpected expenses without appearing maxed out. That said, utilization is only one piece of the picture. Payment history, the age of your accounts, and the mix of credit types all matter too.
Note: The calculator focuses on your utilization across the cards you enter. Credit scores can also look at utilization per card, so a single card that is close to maxed out may still be a concern even if your overall utilization looks reasonable.
Ways to lower your credit utilization quickly
If your utilization is higher than you would like, the good news is that it is one of the easier parts of your credit profile to change. Because many issuers report balances to the credit bureaus monthly, positive changes can sometimes show up in your scores relatively quickly.
Here are some straightforward strategies to consider:
- Pay down revolving balances before the statement date. Making an extra payment before your statement closes can reduce the balance that gets reported to the credit bureaus.
- Spread purchases across multiple cards. Keeping any one card below about 30% of its limit can help you avoid red flags from a maxed-out account.
- Ask for a credit limit increase. If your income and payment history support it, a higher credit limit can lower your utilization without changing your balances. Just be sure not to use the higher limit as an excuse to overspend.
- Avoid closing old cards without a plan. Closing a card can shrink your total available credit and push your utilization higher, even if your spending stays the same.
- Consider a balance transfer or payoff plan. Moving high-interest balances to a lower-rate card, or following a structured payoff method like the debt snowball or avalanche, can help you reduce utilization and interest costs over time.
Tip: Try adjusting the balances in the calculator to see how paying down one card versus another affects your overall utilization. This can help you prioritize which card to target first if your goal is to improve your credit scores.
Frequently Asked Questions (FAQs)
Does credit utilization matter more per card or overall?
Both can matter. Many credit scoring models look at your overall utilization across all cards and at the utilization on individual cards. A single maxed-out card can be a negative signal even if your overall utilization is moderate, so it is wise to keep both your total and per-card ratios in check.
How quickly can lowering my utilization help my credit score?
Credit card issuers usually report your balances to the credit bureaus about once a month, often around your statement closing date. When lower balances are reported, your utilization ratio can improve and your scores may update shortly after. The exact timing depends on when your issuers report and when your scores are pulled.
Is 0% credit utilization bad for my score?
Having no revolving balance at all is not usually “bad,” but some scoring models may give slightly more weight to accounts that show small, regularly paid-off activity. Many people aim to use a small portion of their available credit and then pay it off in full each month, which keeps utilization low while still showing responsible usage.
Do installment loans affect credit utilization?
No. Credit utilization normally applies to revolving accounts like credit cards and lines of credit. Installment loans such as auto loans, personal loans, and mortgages are calculated differently in credit scoring models, though they still affect your overall credit profile.
Will requesting a higher credit limit hurt my credit?
Some issuers can increase your credit limit without a hard inquiry, while others may check your credit and place a hard inquiry on your report. A hard inquiry can cause a small, temporary dip in your score. If you are considering a limit increase, you can ask the issuer whether they will use a soft or hard pull before you proceed.