How this number is made
Utilization is what you owe on revolving accounts divided by the limits. Scoring models often look at each card and at the total. This page is the total. A reported balance can be the statement balance, even if you pay it off before the due date.
- Balances are what will be reported, which is often the statement balance.
- Limits are the credit limits, not your budget.
Formula
Utilization = balances ÷ limits.
Worked example
With the figures already in the form, utilization is 24.0%.
Questions
Is under 30% required?
Thirty percent is a commonly repeated guideline, not a threshold published as a law. Lower is generally treated more kindly. The model is not this page.
Does paying before the statement help?
If the issuer reports the statement balance, paying before the statement cuts the reported utilization. The due date is a different date.