How to use it
- Enter Total balances.
- Enter Total credit limits.
The formula
Utilization = balances ÷ credit limits.
Worked example
$1,500 used on $10,000 of limits is 15% utilization.
Frequently asked questions
What level is ideal?
Under 30%, and lower is better.
Does it change fast?
Yes — paying down balances can lift a score quickly.
Tips
- Pay more than the minimum — it changes payoff dramatically.
- Attack the highest-rate balance first to save the most.
- Stop adding new charges while you pay debt down.
Key terms
- Minimum payment
- The smallest amount due each period.
- Utilization
- Balances divided by credit limits.
- Consolidation
- Combining debts into one loan.