Credit Utilization Calculator

Credit utilization is the percentage of your available credit that you're currently using. It's calculated by dividing your total credit card balances by your total credit limits. This ratio is a key factor in your credit score, typically accounting for about 30% of your FICO® Score.

Generally, credit experts recommend keeping your total credit utilization below 30%. However, the lower your utilization, the better it is for your credit score. The people with the highest credit scores typically have utilization ratios in the single digits.

Yes, high credit utilization can significantly impact your credit score. When your utilization goes above 30%, it may signal to lenders that you're having trouble managing credit or relying too heavily on credit cards, which could lower your credit score.

Credit utilization has an immediate effect on your credit score as soon as your credit card issuer reports your balance to the credit bureaus, which typically happens monthly at the end of your billing cycle.

Generally, it's not recommended to close unused credit cards, especially older ones. Closing a credit card reduces your total available credit, which could increase your overall credit utilization ratio. Additionally, the length of your credit history is another important factor in your credit score.