Credit Utilization Calculator

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Optimize your credit card usage ratio to improve your credit score. Calculate ideal utilization across multiple cards.

Calculate Your Credit Utilization


Rs 10K
Rs 20L


Rs 0
Rs 10L


1%
100%
Recommended: Keep below 30% for good credit score

Current Utilization

30%
Good Range

Available Credit

Rs 1,40,000

Ideal Outstanding

Rs 60,000

Recommendation

Your utilization is optimal

Credit Score Impact

Excellent (0-10%)

Significantly boosts credit score. Shows responsible credit management.

Good (10-30%)

Positive impact on credit score. Recommended range for most people.

Poor (30%+)

Negative impact on credit score. Consider paying down balances.

About Credit Utilization

Credit utilization is the percentage of your available credit that you’re currently using. It’s one of the most important factors affecting your credit score, accounting for about 30% of your CIBIL score calculation.

Credit Utilization Formula:
Credit Utilization = (Total Outstanding / Total Credit Limit) × 100

Example:
Outstanding: Rs 30,000
Credit Limit: Rs 1,00,000
Utilization: 30%

Why Credit Utilization Matters

• Credit Score Impact: Lower utilization significantly improves your credit score

• Loan Approval: Lenders prefer borrowers with low credit utilization

• Interest Rates: Low utilization can help you get better interest rates

• Credit Limit Increase: Banks are more likely to increase limits for low utilization users

💡 Tips to Improve Credit Utilization

• Pay Before Due Date: Make payments before the statement generation date

• Multiple Payments: Make multiple payments throughout the month

• Request Credit Limit Increase: Higher limits reduce utilization percentage

• Spread Across Cards: Distribute spending across multiple cards

Credit Utilization Best Practices

• Keep Below 30%: Industry standard for good credit health

• Aim for 10% or Less: For excellent credit score impact

• Monitor Regularly: Check utilization monthly to stay on track

• Consider Per-Card Utilization: Keep each card below 30% individually

Common Myths

• Myth: You need to carry a balance to build credit

• Truth: You can have 0% utilization and still build credit

• Myth: Utilization history matters for scoring

• Truth: Only current utilization affects your score

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