Credit Usage Calculator

How to Use the Credit Usage Calculator

This guide will walk you through using the Credit Usage Calculator to understand your credit card usage better.

Step 1: Enter Your Credit Limit

Begin by locating the input field labeled Credit Card Limit ($). This field requires you to enter the total credit limit of your credit card. Please ensure the amount is between $100 and $100,000, as per the validation rules.

Step 2: Enter Your Current Balance

Next, find the input labeled Current Balance ($). Here, you’ll need to provide the current outstanding balance on your credit card. The value entered must be a positive number, and it is a required field.

Step 3: Enter Planned Purchase Amount

In the input field labeled Planned Purchase Amount ($), you can enter the amount you plan to spend soon using this credit card. This field is optional, but entering your planned purchases will give you a more accurate projection of your future credit usage.

Step 4: Select Credit Score Impact

To better manage your credit score, use the Desired Credit Score Impact dropdown to select your target utilization rate. You can choose from the following options:

• Excellent (Keep utilization under 10%)
• Good (Keep utilization under 30%)
• Fair (Keep utilization under 50%)

Step 5: Review the Results

Once you provide all necessary inputs, the calculator will compute and display the following results:

• Current Credit Utilization: This tells you what percentage of your credit limit is currently being used.
• Projected Utilization (with planned purchase): Calculates your credit utilization after making your planned purchases.
• Available Credit: Shows how much credit you have available after your current balance.
• Recommended Maximum Balance: Displays the maximum balance you should maintain to achieve your desired credit score impact.
• Additional Safe Spending Available: Indicates how much more you can spend while staying within your selected utilization goal.

Each of these outputs is formatted clearly, with percentages displayed to one decimal place and currency values in USD with two decimal places.

By carefully following these steps and understanding the output, you can use this calculator to manage your credit card usage effectively and maintain a healthy credit score.