Credit Utilization Calculator

4 Min Read | Published: May 8, 2024

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This article contains general information and is not intended to provide information that is specific to American Express products and services. Similar products and services offered by different companies will have different features and you should always read about product details before acquiring any financial product.

Use our credit utilization calculator to see how much credit you’re using compared to your available credit. See steps you can take to lower your ratio.

At-A-Glance

Your credit utilization ratio measures how much of your available credit you’re currently using.
Use our credit utilization calculator to see how much credit you’re using compared to your available credit.
Keeping your credit utilization low could help to improve your credit score.

Your credit utilization ratio is one of the factors that can impact your credit score. Knowing what your credit utilization ratio is can help you to make smart credit decisions. You can use our calculator to see what yours is.

Credit Utilization Ratio Calculator

Curious what your credit utilization ratio is? You can find out now using our handy credit utilization calculator. Input your information into the fields below and see how much of your available credit you’re using.

Use this calculator to evaluate your credit utilization ratio. This metric identifies the percentage of available credit limit across all revolving credit accounts, such as credit cards.

Card 1 Balance (Required)

Card 1 Limit (Required)

Card 2 Balance (Optional)

Card 2 Limit (Optional)

Your Credit Usage

Card 1 Utilization		0.00%
Card 2 Utilization		0.00%
Card 3 Utilization		0.00%
Card 4 Utilization		0.00%
Card 5 Utilization		0.00%
Total Balance		$0.00
Total Limit		$0.00

Overall credit utilization ratio		0.00%

Your utilization:

This calculator is intended for illustrative purposes only and is not intended to offer any tax, legal, financial or investment advice. The terms and conditions of loans will vary by lender and may include additional fees or other terms that the calculator does not contemplate. If you have questions, please consult your own professional legal, tax and financial advisors.

What Is a Good Credit Utilization Ratio?

Generally speaking, a good utilization ratio is a low ratio. The general guidance has been to keep your ratio under 30%. According to data from Experian^®, this is the point where it seems to start to have a more pronounced negative effect on your credit score.¹ However, when you look at the average overall credit utilization ratio broken down by credit range, the groups that have the highest credit scores tend to have lower credit utilization ratios, in the low single digits.²

Is Your Total Utilization Ratio or Per-Card Ratio More Important?

Credit scoring models will consider both your total credit utilization ratio and your per-card ratio when calculating your credit scores. You should focus on both as a lower per-card ratio will lead to a lower total utilization ratio. Remember to be mindful of how much you spend on each card as overspending can result in a higher total ratio.

How Can You Lower Your Credit Utilization Ratio?

Broadly speaking, there are two main ways that you can lower your credit utilization ratio.

These are:

Increasing your credit limit
Reducing your debt

Below, we’ll look at a few tips that can help you to maintain a healthy credit utilization ratio:

Pay down outstanding debt
One of the best ways to reduce your credit utilization ratio is to pay down your balances. Start by mapping out what you owe for credit cards or personal loans, creating a monthly budget, and ensuring that you assign a portion of your income to debt repayment.
Ask for a higher credit limit:
Consider reaching out to your credit card issuer and asking if they can increase your credit limit. This will give you some cushion as you repay your balances and work to reduce your credit utilization ratio.
Keep your credit cards open:
You may want to consider closing credit card accounts if you tend to overspend. But keeping them open can be an easy way to maintain a lower ratio because their credit limits will add to your available credit.³

You can also prioritize your credit health with the American Express MyCredit Guide. With the easy-to-use FICO^® Score Simulator, you can track possible impacts to your FICO^® Score for free before making big financial decisions. (FICO is a registered trademark of Fair Isaac Corporation in the U.S. and other countries.)

American Express MyCredit Guide. Your FICO Score and credit report, for free. With Identity Monitoring, insights & tools, and real-time alerts. Enroll Now

Frequently Asked Questions

Generally speaking, lower credit utilization ratios are best. A 30% credit utilization ratio is better than 50% or 70%. However, if you’re able to maintain a ratio that’s lower than 30%, that’s even better. Remember that people who have higher credit scores tend to have low credit utilization ratios in the single digits.⁴

A new credit card can lower your credit utilization ratio since you’ll have a higher available balance and, therefore, will be using less of your available credit. Keep in mind that this is only a good strategy if you’re confident you won’t be tempted to overspend.

You can achieve a 0% credit utilization ratio. However, this may not be ideal. Credit scoring models need to see activity in order to calculate your score. Using your credit cards but maintaining a low utilization ratio and paying the balances off on time can show that you’re using the card responsibly.⁵

The Takeaway

Your credit utilization ratio shows how much available credit you’re currently using compared to your available credit. Maintaining a low credit utilization ratio can help your credit score.

^1,2,3,4,5 “What Is a Credit Utilization Rate?,” Experian

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Anna Baluch is a personal finance writer from Cleveland, OH. She enjoys helping people from all walks of life make smart financial decisions. Her work can be seen on Credit Karma, Forbes, LendingTree, Insurify, and many other publications. Connect with Anna on LinkedIn.

All Credit Intel content is written by freelance authors and commissioned and paid for by American Express.

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The material made available for you on this website, Credit Intel, is for informational purposes only and intended for U.S. residents and is not intended to provide legal, tax or financial advice. If you have questions, please consult your own professional legal, tax and financial advisors.