Credit Advice

Have a question? Have advice to share? The combined knowledge and experience of everyone in the Credit Karma community can help you. Enter your question or help others below to get started!

Question

Posted in Credit Scores
Profile Image

Question By
KingSR87

0 Contributions
0 People Helped
Credit Card Utilization Percentage
Hi,
How the Credit Card Utilization Percentage is being calculated? Say I have three Credit Cards. First CC - $300 used out of limit $1000. Second Card - $10 used out of limit $ 1000. And Third CC - $50 used out of limit $ 2000. In that scenario, what is the utilization percentage ? (300+10+50)/(1000+1000+2000)*100%. i.e. 9% or it's being calculated individually for each Credit Card.

Your Credit Scores Should Be Free. And Now They Are.

View your scores and reports anytime.

SIGN UP NOW
All Responses

Result 1-1 of 1Results per page: 5 | 10 | 25Page 1 of 1   Previous | Next
Top Contributor
138 Contributions
96 People Helped

Helpful to 0 out of 1 people

Depends on the scoring systems so really it can be both. Some report that overall utilization at 10% or lower is ideal, however, having a balance on all your cards reporting tends to be worse than having a high utlization report on only 1 card. Another variable to consider is that not all cards report your credit limit to the bureaus, some only report the highest reported balance as your limit which can skew your utilization.

The way you're calculating it is the most reasonable way to keep track of it yourself...it's what I do.

Result 1-1 of 1Results per page: 5 | 10 | 25Page 1 of 1   Previous | Next

Your Credit Scores Should Be Free. And Now They Are.

View your scores and reports anytime.

SIGN UP NOW

Reply to this Question

Write your response:
Enter Your Comments

The Credit Advice pages of the Site may contain messages submitted by users over whom Credit Karma has no control. Credit Karma cannot guarantee the accuracy, integrity or quality of any such messages. Some users may post messages that are misleading, untrue or offensive. You must bear all risk associated with your use of the Credit Advice pages and should not rely on messages in making (or refraining from making) any specific financial or other decisions.