Credit Utilization Ratio
Calculator

It divides your total outstanding credit card balances by your total available credit limit across those cards, expressed as a percentage, and can be calculated per card or as an overall aggregate across all revolving accounts.

Credit scoring models treat high utilization as a signal of potential financial strain, since it suggests reliance on borrowed funds relative to what's available, so lower utilization is generally viewed as healthier credit behavior.

Keeping utilization under 30% is a commonly cited guideline, with under 10% often viewed as excellent; the lower the ratio, generally the better it looks to scoring models, all else being equal.

Utilization is typically calculated from the balance reported on your statement closing date, not necessarily your balance at the time you check, so paying in full after the statement closes may not lower the utilization used in that scoring cycle.

Usually not, since closing a card reduces your total available credit, which can increase your utilization ratio on the remaining balance even if you didn't borrow any more money — keeping the card open with a zero balance is often better for your ratio.