How this calculator works
Credit utilization is the share of your revolving credit limits that you are currently using. It is calculated on total balances across cards and lines of credit rather than on one account at a time, because scoring looks at both the overall ratio and each account. Under the widely used FICO and VantageScore models, a lower ratio generally helps. A common rule of thumb is to stay under 30%, and under 10% is often better. Utilization is measured when your statement closes, so paying before the statement date lowers the reported figure even if you spend again afterwards.
Formula
Utilization = total card balances / total credit limits. Available credit = total credit limits - total card balances. Each card is weighted by its own limit, so a large empty card offsets a small, heavily used one.
Worked example
Balances of $2,250, $900 and $0 against limits of $5,000, $3,000 and $1,500 total $3,150 of $9,500, which is 33.16% utilization. Available credit is $6,350, and the ratio sits above the 30% guideline, so the rating is moderate.
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Frequently asked questions
Does paying off one card help?
Yes. Reducing any balance lowers the total, and clearing a small card also improves that account ratio. Closing a card, on the other hand, removes its limit and can raise the overall ratio.
Is utilization calculated per card or overall?
Both. Scoring models consider each account ratio and the aggregate ratio. This calculator reports the aggregate figure.
Why does my reported ratio differ from this one?
Issuers report balances on the statement closing date, not today. A balance you paid after the statement date may still be included in the latest data sent to the credit bureaus.
Is 30% a rule?
No, it is a guideline often repeated in credit education. Scoring models do not publish a pass mark, and the effect of utilization depends on the rest of the credit file.