What's a good credit utilization ratio?

Common guidance suggests keeping utilization below 30%, with lower being generally better for credit scores — some sources suggest under 10% for optimal scores.

Does paying off a balance immediately improve my score?

Utilization is typically based on your balance at the time it's reported to credit bureaus (often your statement closing date), so paying down balances before that date can help more than paying right after.

Debt-to-Limit Ratio Calculator

Calculate your credit utilization ratio — the percentage of your total available credit that you're currently using, a major factor in credit scores.

Total credit card balance

Total credit limit

Credit Utilization

30%

Within the commonly recommended 30% threshold

How It Works

The formula

Credit utilization = total balances ÷ total credit limits × 100 — calculated either per card or across all revolving credit accounts combined.

Example Calculation

Someone with $2,500 in combined credit card balances and $10,000 in total credit limits has a 25% utilization ratio.

Common Mistakes

Only checking one card's utilization when credit scoring models often also look at your overall utilization across all accounts.
Closing old credit cards, which reduces your total available limit and can raise your utilization ratio even if your balances don't change.

Frequently Asked Questions

What's a good credit utilization ratio?: Common guidance suggests keeping utilization below 30%, with lower being generally better for credit scores — some sources suggest under 10% for optimal scores.
Does paying off a balance immediately improve my score?: Utilization is typically based on your balance at the time it's reported to credit bureaus (often your statement closing date), so paying down balances before that date can help more than paying right after.

Debt-to-Income Ratio CalculatorCalculate your debt-to-income ratio from monthly debt and gross income.