Credit Utilization Calculator
Calculate your credit utilization ratio and see how it impacts your credit score.
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Frequently Asked Questions
What is a good credit utilization ratio?
Under 30% is the widely cited guideline, but under 10% is ideal for maximum credit score benefit. Credit utilization accounts for about 30% of your FICO score — the second most important factor after payment history. At 0% utilization (no balances reported) some scoring models may actually score slightly lower than at 1-5% utilization.
How quickly does paying down balances improve credit score?
Credit card balances are typically reported to credit bureaus once per month on your statement closing date. Once your lower balance is reported, your score can improve within 30-45 days. Paying down high utilization cards is one of the fastest ways to improve your score — some people see 20-50 point improvements within one to two billing cycles.
Does requesting a credit limit increase help utilization?
Yes — a higher limit with the same balance lowers utilization immediately. Example: $2,000 balance on $5,000 limit = 40% utilization. After a $10,000 limit increase: $2,000 / $15,000 = 13% utilization. However requesting a limit increase may trigger a hard inquiry (-5 points temporarily). The net effect is usually positive if you do not increase spending.