Skip to content

utilization-examples.md

Latest commit

 

History

History
92 lines (60 loc) · 2.88 KB

utilization-examples.md

File metadata and controls

92 lines (60 loc) · 2.88 KB
Raw

Utilization examples

Worked examples for learning. Numbers are illustrative — your issuer reporting may differ. No score outcome is guaranteed.

JSON versions live in data/utilization-example-scenarios.json.

Use the credit utilization calculator to model your own cards.

Example 1 — One card at 30%

Amount
Balance $300
Limit $1,000
Utilization $300 ÷ $1,000 = 30%

With only one revolving account, per-card and overall utilization are the same.

Example 2 — One card at 85%

Amount
Balance $850
Limit $1,000
Utilization 85%

High utilization on your only card equals high overall utilization.

Example 3 — Two cards, overall 25%

Card Balance Limit Per-card utilization
A $200 $500 40%
B $300 $1,500 20%
Total $500 $2,000 25% overall

Overall utilization = $500 ÷ $2,000 = 25%.

Note: 25% is not the average of 40% and 20% (which would be 30%). Always divide total balances by total limits.

Example 4 — One maxed card, moderate overall

Card Balance Limit Per-card utilization
A $1,000 $1,000 100%
B $0 $2,000 0%
Total $1,000 $3,000 33.3% overall

Overall utilization looks moderate, but Card A is maxed. Many scoring approaches still consider per-card utilization.

Example 5 — Secured card, small limit

Amount
Balance $120
Limit $300
Utilization 40%

Everyday spending can push utilization up quickly on starter cards. See secured-card education materials in the Credit Plainly credit builder hub if you are building credit with a deposit-backed card.

Example 6 — Paydown before statement (illustrative)

You charge $800 during the month but pay $750 before the statement closes. The issuer reports a $50 statement balance on a $1,000 limit.

Amount
Reported balance $50
Limit $1,000
Utilization 5%

Your current balance mid-month may have been higher. Reports reflect furnished balances, not every intraday app snapshot.

What to do with these examples

  1. Pull your latest statements and note each card's limit and reported balance.
  2. Run the numbers in the calculator.
  3. Walk through the utilization review checklist.
  4. Read what affects your credit score for context beyond utilization alone.