Calculate your credit utilization ratio from your card balances and credit limits to see how much of your available credit you are using and how it may affect your score.
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Credit Utilization Formula
Per-card utilization:
CU = (B / L) * 100
Overall utilization across all revolving accounts:
CU = (TB / TL) * 100
Where:
- CU is the credit utilization ratio, expressed as a percent.
- B is the balance on a single card.
- L is the credit limit on that card.
- TB is the total balance across all of your cards.
- TL is the total credit limit across all of your cards.
Per-card utilization tells you how much of one card limit you are using. Overall utilization tells you how much of your combined limit you are using across every revolving account. Both figures are reported to the credit bureaus, and the amount you owe relative to your limits accounts for roughly 30 percent of a FICO score.
Utilization Ranges and Score Impact
Use the ranges below to read a utilization result. Lower is generally better, and the strongest scores usually sit in the single digits.
| Utilization | Interpretation |
|---|---|
| 0% to 9% | Excellent, typical of the highest credit scores |
| 10% to 29% | Good, generally considered a healthy level |
| 30% to 49% | High, often begins to lower your score |
| 50% to 100% | Very high, usually a strong negative factor |
The table below shows the largest total balance you can carry while staying at two common targets, based on your total credit limit.
| Total Credit Limit | Balance at 10% | Balance at 30% |
|---|---|---|
| $5,000 | $500 | $1,500 |
| $10,000 | $1,000 | $3,000 |
| $20,000 | $2,000 | $6,000 |
Example Problems
Example 1. You have two cards. Card 1 has a $300 balance on a $2,000 limit, and Card 2 has a $1,200 balance on a $4,000 limit. Card 1 utilization is 300 / 2000 * 100, which is 15%. Card 2 utilization is 1200 / 4000 * 100, which is 30%. Your overall utilization is the total balance of $1,500 divided by the total limit of $6,000, times 100, which is 25%.
Example 2. You want to know the most you can owe while staying at 30% on a total limit of $10,000. The maximum balance is 10000 * (30 / 100), which is $3,000.
Frequently Asked Questions
What is a good credit utilization ratio? A ratio under 30% is widely considered good, and keeping it under 10% is better still. People with the highest scores tend to have single-digit utilization.
Should I aim for 0% utilization? Very low utilization helps your score, but a reported 0% across every account can be slightly less favorable than carrying a small balance. A few percent is generally fine.
How does overall utilization differ from per-card utilization? Overall utilization uses the sum of all balances divided by the sum of all limits, while per-card utilization looks at one card on its own. Both are considered, so a single maxed-out card can still hurt you even when your overall ratio is low.
