**5+ Ways How To Calculate Credit Utilization**. (credit card balance) ÷ (card’s credit limit) total credit utilization ratio formula: You can also calculate your utilization rate separately for each credit card, but your credit score focuses on your total credit utilization rate across all cards.

Credit card utilization ratio formula: Credit utilization is the ratio of your outstanding credit balances (on both credit cards and lines of credit) compared to your overall credit limit combined across your accounts. Improving your credit utilization ratio is one way to improve your credit score.

### Your Total Available Credit Is $20,000, And Your Total Outstanding Balance Is $7,000.

One major scoring factor is your credit utilization ratio, which is a. To find your utilization rate, divide your total balance ($4,000) by your total credit limit ($20,000). Let’s say you have two credit cards, each with a $10,000 limit.

### The Individual’s Credit Utilization Ratio For Each Month Is Calculated As:

Add the total outstanding balance of all your revolving debt. Credit utilization is calculated by dividing the balance by credit limit for each card and for all cards together. Improving your credit utilization ratio is one way to improve your credit score.

### Add The Credit Limits Associated With Each Account.

Your overall credit utilization ratio would be $7,000 / $20,000 = 35%. Divide your total debt by your combined credit limit and multiply by 100 to obtain your credit utilization as a. Payment history (35%) level of debt/credit utilization (30%) the age of credit (15%) mix of credit (10%) new credit (10%) 2.

### Credit Scores Consider A Variety Of Information In Your Credit Report To Determine Your Score.

To calculate your credit utilization ratio, divide your debt by the total amount of credit available to you and multiply this number by 100. Your credit utilization ratio is the amount you owe across your credit cards (and other revolving credit lines) compared to your total available credit, expressed as a percentage. Multiply that number (from step 3) by 100 to see your credit utilization as a percentage.

### The Resulting Number Represents The Percentage Of Your Available Credit That Is Currently In Use.

Next, take that total and multiply it by 100 to get your percentage rate. • pay your minimun amount requested more than once per month, that is, make additional payments to. To demonstrate, here is the utilization rate formula: