Imagine having a credit card with a $2,000 limit as your only source of available credit. Your credit utilization rate, if you have a balance of $750, is 37%.
Your credit usage rate, also known as your credit utilization ratio, is calculated by dividing the amount of revolving credit you are now using by the total amount of revolving credit you have available. It is your total debt divided by your credit limit, to put it another way.
You may calculate your credit use % for each card by simply dividing your balance by your credit limit. To calculate your overall credit utilization ratio, add up the amounts on all of your revolving credit cards, then divide the total by the sum of your credit limits.
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