By Ben LuthiHow to Calculate Your Credit Card Utilization
By Ben Luthi
Quick Answer
- To calculate your credit card utilization, divide your credit card balance by its credit limit, then multiply by 100.
- For overall utilization, add all balances and divide by your total limits.
- A ratio under 10% is generally best for your credit scores.
You can calculate your credit utilization ratio by dividing your credit card's balance by your credit limit and then multiplying by 100. The math takes only a few seconds, but knowing where to find the right numbers isn't always obvious.
Credit scoring companies don't pull these figures straight from your credit card accounts. Rather, they rely on the balances and limits reported on your credit report, so those are the numbers to use when you run the calculation yourself.
What Is Credit Utilization?
Credit utilization is the percentage of your available revolving credit that you're currently using. Scoring models and lenders look at this number to gauge how heavily you lean on your credit cards and other personal revolving accounts.
It matters because credit utilization is one of the biggest influences on your credit scores, second only to your payment history. A high ratio can suggest you're stretched thin, while a low ratio signals that you're handling your credit comfortably.
Note: While they are a type of revolving credit, home equity lines of credit are usually excluded from the credit utilization calculation for FICO® ScoresΘ but can affect your VantageScore® credit scores. They can also affect your credit in other ways.
Learn more: What Is the Best Credit Utilization Ratio?
How to Calculate Your Credit Utilization Ratio
To find your overall credit utilization rate, add up the balances on your revolving credit cards, divide that total by the sum of your credit limits and multiply by 100. The result is the share of your available credit that you're using. Here's how to calculate it:
The figures you use should come from your credit report rather than your current account balances. Start by pulling your Experian credit report and work from the numbers listed there. You can run the same math on a single card to find its individual utilization, and both the overall figure and individual card ratios can factor into your scores.
Example: Say you have two credit cards. One has a $1,500 balance and a $5,000 limit. The other has a $500 balance and a $5,000 limit. Add the balances ($2,000) and divide by your total limit ($10,000) to get 0.2. Then, multiply that by 100 to get a total utilization ratio of 20%.
What Is a Good Credit Utilization Ratio?
As a general rule of thumb, people who have excellent credit scores tend to have utilization ratios below 10%, but there's no hard line where utilization goes from a bad to good percentage. Some people believe that keeping utilization under 30% is a good target, and the average credit card utilization ratio in the U.S. was 28.3% in March 2026, according to Experian data.
But utilization is only one of the factors within the "amounts owed" FICO credit scoring category, so it's also important to keep an eye on your overall debt burden.
Important: A very low utilization ratio may be better for your credit scores than 0% utilization, since it shows that you're actively using and managing some credit.
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How Does Credit Utilization Affect Your Credit Scores?
Both VantageScore and FICO credit scores consider your utilization when calculating your score. Here's what to keep in mind:
- Overall and individual utilization rates matter. Your overall utilization rate can be a significant factor in your credit scores. That said, the utilization rate on individual accounts can also affect your scores.
- Most credit scores only consider the most recently reported numbers. While an exceptionally high utilization rate may hurt your scores one month, lowering your utilization rate could help your scores the next.
- Newer scoring models may consider utilization over time. The latest VantageScore 4.0 and FICO 10 T models consider trends in your credit history, such as your utilization rate over time.
In general, the lower your utilization ratio, the better. But your utilization changes as credit card issuers send updates to the credit bureaus, and the effect on your scores will depend on the entirety of your credit profile. Since lenders often consider your credit scores as one factor when setting interest rates on new credit, such as personal loans, minimizing utilization may help you qualify for better terms.
Learn more: How Important Is Credit Card Utilization to Your Credit Score?
How to Lower Your Credit Utilization Ratio
Because utilization comes down to two numbers—your reported balance and your credit limit—you can lower it by shrinking the balance or raising the limit.
It's important to know that card issuers often send updates to the credit bureaus around the end of your statement period, a few weeks before your bill is due. As a result, you could pay your credit card bill in full each month and still have a high utilization rate.
Here are a few approaches you can take to keep your credit card utilization low:
- Make early credit card payments. Pay down your credit card balance before the end of your statement period to reduce the balance that your card issuer reports.
- Increase your card's credit limit. You can ask your card issuer to increase your credit limit. This sometimes results in a hard inquiry, which could temporarily hurt your credit scores a little.
- Report income increases to card issuers. Your card issuer also might proactively increase your card's credit limit if you manage the card responsibly or your income rises. You can report your new annual income in your online account whenever your income goes up.
- Open a new card. Opening a new credit card increases your available credit, which can lower your overall utilization rate. However, you may want to find a credit card that offers additional benefits as well, such as rewards, an intro 0% APR promotion or travel perks.
- Use a personal loan to consolidate debt. If you're paying off credit card debt, you could look into consolidation with a personal loan. You may be able to save money if you qualify for a loan with a low interest rate, and you'll lower your utilization rate by moving the debt from a revolving to an installment account.
- Keep credit cards open. There can be good reasons to close credit cards, such as paying an annual fee on a card you never use or overspending. However, keeping credit cards open increases your available credit limit, which can help you maintain a low utilization rate.
Track Your Credit Utilization Ratio for Free
Once you know the formula, keeping tabs on your utilization gets easy. With free credit monitoring from Experian, you'll get your overall credit utilization ratio calculated for you. You can also review the ratio on each revolving account and watch how those figures shift over time. You'll also get your FICO® Score and insights into what's helping or hurting your credit.
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About the author
Ben Luthi
Ben Luthi has worked in financial planning, banking and auto finance, and writes about all aspects of money. His work has appeared in Time, Success, USA Today, Credit Karma, NerdWallet, Wirecutter and more.
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