Enter the total amount of open credit balances and the total credit limit on all lines of credit to determine the credit utilization ratio.

## Credit Utilization Ratio Formula

The following formula is used to calculate a credit utilization ratio.

CU = TB / TCL *100

• Where CU is the credit utilization ratio (%)
• TB is the total credit balances ($) • TCL is the total credit limit ($)

## Credit Utilization Ratio Definition

A credit utilization ratio is a measure of the total percentage or proportion of the total available credit limit that a person uses at any given time.

## Credit Utilization Ratio Example

How to calculate a credit utilization ratio?

1. First, determine the total credit balances.

Add together all of the balances on open credit cards/ credit lines.

2. Next, determine the total available credit.

Add together all of the credit limits together to find the total.

3. Finally, calculate the credit utilization.

Calculate the credit utilization using the formula above.

## FAQ

What is a credit utilization ratio?

A credit utilization ratio is the portion of available credit that a person uses at any given time.