Keeping Utilization Low

Lenders look closely at how much of your available credit you use. High balances can drag down your score even if you never miss a payment. This planner shows your current utilization percentage and how much you need to pay to hit a target ratio.

Formula

Utilization $U$ is calculated by dividing balance by credit limit and converting to a percentage:

where $B$ is balance and $L$ is total credit limit. If your current utilization is above your goal, the payment required is $B-L\frac{T}{100}$ where $T$ is the target percent.

Using the Planner

Enter your combined credit limits and the total balances you carry. Financial experts often recommend staying below 30 % utilization, and lower is usually better. The output tells you the payment needed to reach your goal. If your utilization is already lower, it encourages maintaining current habits.