Credit Utilization Calculator

The Credit Utilization Calculator helps you determine your credit usage percentage by comparing your total credit card balances to your credit limits. Keeping your utilization low can improve your credit score and financial health. This tool gives a quick overview of where you stand and how you might adjust your balances for better credit management.

Frequently Asked Questions

What is credit utilization?

Credit utilization is the percentage of your total credit limit that you're currently using.

Why is credit utilization important?

It’s a key factor in your credit score. Lower utilization typically indicates responsible credit management.

What’s a good credit utilization rate?

Experts recommend keeping your credit utilization below 30% for optimal credit health.

Does credit utilization affect all types of credit?

No, it mostly applies to revolving credit like credit cards, not installment loans like mortgages or auto loans.

Similar Calculators