Credit Utilization Calculator
Credit utilization is the percentage of your available credit you’re using. This tool calculates utilization per card and overall, and shows how much you’d need to pay down to reach common targets.
Credit utilization definition (snippet-ready) + formula
Credit utilization is the share of your available revolving credit you’re currently using.
Per card: Utilization = Balance ÷ Credit limit
Overall: Overall utilization = Total balances ÷ Total limits
Common utilization targets (table)
| Target | Why people use it | Interpretation |
|---|---|---|
| < 30% | Common rule-of-thumb | Often cited as a reasonable upper bound for revolving utilization. |
| < 10% | More conservative | Lower utilization can be better, but results vary. |
| 0%–1% | Very low | Some people prefer a small reported balance vs exactly 0%. |
Related calculators
- Track your full financial snapshot: Net Worth Calculator
- Paying down debt efficiently: Credit Card Payoff Calculator
- Budgeting for paydown: Budget Calculator
- Check affordability: DTI Calculator
Practical strategy (without over-optimizing)
- Pay before statement close if your issuer reports statement balances (often lowers reported utilization).
- Avoid maxing a single card: per-card utilization can matter even when overall is OK.
- Don’t chase a magic number: on-time payment history and total debt burden still matter.
Common mistakes (and how to avoid them)
- Only looking at overall utilization: per-card utilization can matter—one maxed card can drag results even if overall is okay.
- Paying after the statement closes: if your issuer reports statement balances, paying before close can reduce reported utilization.
- Chasing a single “magic” threshold: utilization is one factor. Payment history and total debt burden matter too.
- Not planning for limits changing: if a limit decreases, utilization can jump even with the same balance—keep a buffer.
How we maintain accuracy (methodology)
We document assumptions and sourcing for consumer finance topics. See Editorial Policy & Methodology.
Frequently Asked Questions
Q:What is credit utilization?
Credit utilization is the percentage of your available revolving credit you’re using: balance ÷ limit.
Q:How do I calculate overall credit utilization?
Add all card balances and divide by the sum of all card limits: total balances ÷ total limits.
Q:Does utilization matter per card or overall?
Both can matter. A single maxed-out card may be viewed differently than evenly spread utilization.
Q:Is 30% utilization a hard rule?
No. It’s a common heuristic. Lower utilization is often better, but there’s no single magic number for everyone.
Q:How do I lower utilization fast?
Pay down balances, increase credit limits (responsibly), or spread spending across cards — while keeping total balances controlled.
Q:Do pending charges count in utilization?
Utilization typically reflects reported statement balances, which may include posted transactions. Pending charges usually aren’t reported until posted.
Q:Should I keep a small balance to build credit?
You can build history by using cards and paying on time. Some people prefer a small reported balance, but on-time payment history is also key.
Q:Does paying before the statement date help?
Often yes, because lower statement balances may be reported to bureaus. Reporting varies by issuer.
Q:What if I have 0% utilization?
It’s not necessarily bad. Many people report 0% and still have excellent credit. Results vary across scoring models.
Q:Is utilization relevant outside the US?
Credit systems differ by country, but revolving utilization is a common concept wherever credit cards and limits exist.
Q:Is overall utilization more important than per-card utilization?
Both can matter. Many people improve results by lowering the highest-utilization card first (our calculator suggests an allocation).
Q:Why can utilization change even if I didn’t spend more?
Reporting timing and limit changes matter. If a limit decreases, utilization rises even at the same balance. If a balance reports before a payment posts, utilization can look higher.
Q:Should I request a credit limit increase to lower utilization?
It can help if your balance stays the same, but it depends on issuer policies and your situation. A limit increase is most useful when paired with disciplined spending and on-time payments.
Q:Do charge cards (no preset limit) count in utilization?
It depends on how a charge card is reported. Some scoring models treat them differently. This calculator is designed for revolving credit lines with explicit limits.