Credit Utilization Calculator
4 Min Read | Published: July 28th, 2025
Credit card utilization refers to the percentage of your available credit that you're currently using. It’s calculated by dividing your credit card balance by your credit limit and multiplying by 100. For example, if you have a $1,000 limit and a $300 balance, your utilization is 30%. This metric plays a major role in your credit score—accounting for about 30% of your FICO® score—because it reflects how responsibly you manage revolving credit.
What is a good utilization ratio?
Generally speaking, the best utilization ratio is a low one. It is commonly know as a best practice to keep your utilization below 30%. Experts recommend aiming for under 10% for optimal credit score results. A single card at 90–100% utilization can impact your score even if all others are low. Lenders may view this as high-risk behavior.
Use this calculator to assess your credit utilization ratio.
Ways to lower utilization
1. Pay Down Balances
The most direct way to lower utilization is by paying off your credit card balances even small extra payments make a difference.
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2. Make Multiple Payments Per Month
Don’t wait for your due date. Paying before your statement closes helps lower the balance reported to the credit bureaus.
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3. Request a Credit Limit Increase
Increasing your credit limit — without increasing your spending — lowers your utilization ratio. Just make sure your account is in good standing before requesting it.
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4. Open a New Credit Card
Adding a new card increases your total available credit, which can reduce your overall utilization. However, only do this if it fits your financial strategy and won’t lead to overspending.
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5. Avoid Closing Old Cards
Even if you don’t use them often, keeping older credit cards open preserves your credit limit and helps maintain a lower utilization rate.
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6. Use Less of Each Individual Card
Utilization is calculated per card and overall. Try to spread out your spending across multiple cards to keep individual balances low.
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7. Paying Before the Statement Date Helps
Don't wait until your due date. Making an early payment before your statement closes can reduce your reported balance and improve your utilization rate.
In Summary
​​Using too much of your credit limit can cause a significant dip in your score, even if you’re never late.
​​​Utilization is a snapshot in time. Your score can fluctuate month to month based on how much you use and what gets reported. Staying consistent is key.