Credit utilization calculator

What utilization is

Credit utilization is the share of your available revolving credit you are using: your card balances divided by your card limits. Scoring models look at it overall and card by card, which is why the calculator shows both. FICO puts "amounts owed," the category utilization falls under, at about 30 percent of its score.

A worked example

Overall, that is $1,650 of $7,000, or 24 percent. Card A on its own is at 40 percent. Getting the overall figure to 10 percent would take a payment of $950.

The 30 percent figure

The CFPB says experts advise keeping your use of credit at no more than 30 percent of your total limit. It is a rule of thumb, not a line in any score: lower generally reads better, and there is no bonus for crossing 30 percent on the way down.

Things that change the ratio

• The balance that counts is usually the one on your statement, not the one after you pay. Paying before the statement closes lowers the reported figure.
• Closing a card removes its limit from the total, which can raise your utilization even though you owe the same.
• Moving balances onto one card can push that card near its limit.
• A limit increase lowers the ratio, but asking for one may bring a hard inquiry.

Utilization has no memory in many widely used models: it reflects the balances reported now. That makes it one of the fastest parts of a score to change, and one reason a denial letter that cites balances is worth reading closely (see what a credit denial letter must tell you).