The Three Easy Steps to Calculating Your Credit Utilization Ratio
Your credit utilization is the percentage of your credit limit that's being used. It is 30% of your credit score. As your credit utilization rises above 30%, your credit score starts to decrease. Here's how to calculate your credit utilization.
Difficulty: Easy
Time Required: 5 minutes
Here's How:
- Locate your current balance and credit limit on your latest credit card billing statement. If your credit limit is not listed, you can call your credit card's customer service using the number on the back of your credit card.
- Divide the credit card balance by the credit limit. (In your calculator, enter the credit card balance, press the "divide by" button, then enter the credit limit and press the "equal" button.") Do not clear your calculator yet.
- Multiply by 100. (In your calculator press the "multiply" button and enter 100. Then press the "equal" button.) The result is your credit utilization as a percentage.
What You Need:
- Your latest credit card billing statement
- A calculator
- Your credit card (optional)