What does this tool do?
Credit utilization is the share of your revolving credit limits currently in use. It is a snapshot that changes with every statement, and lower utilization is generally viewed more favourably by lenders.
The Formula
Utilization (%) = Balance ÷ Total credit limit × 100Frequently Asked Questions
Is 30% utilization a hard rule?
It is a common guideline rather than a rule. Lower utilization is generally better, but payment history and account age also matter.
Should I close unused cards?
Closing a card can reduce your total limit and raise utilization. Consider keeping long-held accounts open if there is no annual fee.