Credit Utilization Calculator

How to Use the Credit Utilization Calculator

This Credit Utilization Calculator helps you determine your total credit limit, total balance, and overall credit utilization rate using information from up to three credit cards. Follow the steps below to get your results.

Step 1: Enter Credit Card Information

• Credit Card 1:
  • Limit ($): Enter the credit limit for your first credit card in the designated field. This is a required field and must be a number greater than or equal to 0.
  • Balance ($): Enter the current balance for your first credit card. This is a required field and must be a number greater than or equal to 0.
• Credit Card 2 (Optional):
  • Limit ($): If applicable, enter the credit limit for your second credit card. If left blank, it will default to 0.
  • Balance ($): Enter the current balance for your second credit card, or leave it blank if not applicable.
• Credit Card 3 (Optional):
  • Limit ($): If applicable, enter the credit limit for your third credit card. If left blank, it will default to 0.
  • Balance ($): Enter the current balance for your third credit card, or leave it blank if not applicable.

Step 2: Calculate Your Results

After entering your credit card information, the calculator will perform the following calculations:

• Total Credit Limit: This is the sum of the credit limits for all your cards. Empty fields will default to 0.
• Total Balance: This is the sum of the balances for all your cards. Empty fields will default to 0.
• Overall Credit Utilization Rate: This is calculated as (Total Balance / Total Credit Limit) * 100 to represent the percentage utilization across all cards.
• Card 1 Utilization Rate: The utilization rate for Credit Card 1, calculated as (Balance / Limit) * 100.
• Card 2 Utilization Rate: The utilization rate for Credit Card 2, calculated only if a limit is entered; otherwise, it defaults to 0.
• Card 3 Utilization Rate: The utilization rate for Credit Card 3, calculated only if a limit is entered; otherwise, it defaults to 0.
• Available Credit: The difference between your total credit limit and total balance.

Step 3: Review Your Results

Once the calculations are complete, review each result to understand your overall credit health. You’ll find your credit limits, balances, utilization rates for each card, and available credit displayed in a clear format. This information can help you make informed financial decisions and manage your credit effectively.

Use these results to determine if you need to reduce your credit card balances to improve your utilization rate, which can impact your credit score positively.