Credit utilization is the percentage of available credit currently being used. It can be calculated for each credit card individually and across all credit cards combined.

Credit utilization is an important factor considered in credit scoring. Generally, maintaining lower balances compared with available credit can help support a healthier credit profile.

For an individual card:

Credit Utilization (%) = (Card Balance ÷ Card Limit) × 100

For all applicable cards:

Overall Credit Utilization (%) = (Total Card Balance ÷ Total Card Limit) × 100

Keeping credit utilization below 30% is a commonly used guideline. In general, a lower utilization ratio is preferable.

Credit utilization can generally be lowered by reducing outstanding card balances or increasing available credit. Paying down balances regularly can help keep utilization lower.