.credit-utilization-calculator {
font-family: 'Segoe UI', Tahoma, Geneva, Verdana, sans-serif;
max-width: 600px;
margin: 20px auto;
padding: 25px;
border: 1px solid #e0e0e0;
border-radius: 10px;
background-color: #f9f9f9;
box-shadow: 0 4px 12px rgba(0, 0, 0, 0.08);
}
.credit-utilization-calculator h2 {
color: #2c3e50;
text-align: center;
margin-bottom: 20px;
font-size: 1.8em;
}
.credit-utilization-calculator p {
color: #34495e;
line-height: 1.6;
}
.calculator-form .input-group {
margin-bottom: 15px;
display: flex;
flex-direction: column;
}
.calculator-form label {
margin-bottom: 5px;
font-weight: bold;
color: #34495e;
font-size: 0.95em;
}
.calculator-form input[type="number"] {
padding: 10px;
border: 1px solid #ccc;
border-radius: 5px;
font-size: 1em;
width: calc(100% – 22px);
box-sizing: border-box;
}
.calculator-form button {
display: block;
width: 100%;
padding: 12px 20px;
background-color: #28a745;
color: white;
border: none;
border-radius: 5px;
font-size: 1.1em;
cursor: pointer;
transition: background-color 0.3s ease;
margin-top: 20px;
}
.calculator-form button:hover {
background-color: #218838;
}
.calculator-results {
margin-top: 30px;
padding-top: 20px;
border-top: 1px solid #eee;
}
.calculator-results h3 {
color: #2c3e50;
margin-bottom: 15px;
font-size: 1.5em;
}
.calculator-results p {
font-size: 1.1em;
margin-bottom: 8px;
}
.calculator-results strong {
color: #007bff;
font-size: 1.2em;
}
#utilizationAdvice {
font-weight: bold;
margin-top: 15px;
padding: 10px;
border-radius: 5px;
background-color: #e9f7ef;
border: 1px solid #d4edda;
color: #155724;
}
#utilizationAdvice.warning {
background-color: #fff3cd;
border-color: #ffeeba;
color: #856404;
}
#utilizationAdvice.danger {
background-color: #f8d7da;
border-color: #f5c6cb;
color: #721c24;
}
function calculateUtilization() {
var card1Limit = parseFloat(document.getElementById('card1Limit').value);
var card1Balance = parseFloat(document.getElementById('card1Balance').value);
var card2Limit = parseFloat(document.getElementById('card2Limit').value);
var card2Balance = parseFloat(document.getElementById('card2Balance').value);
var card3Limit = parseFloat(document.getElementById('card3Limit').value);
var card3Balance = parseFloat(document.getElementById('card3Balance').value);
var totalLimit = 0;
var totalBalance = 0;
var utilizationRatio = 0;
var advice = "";
var adviceElement = document.getElementById('utilizationAdvice');
// Validate inputs and sum them up
if (!isNaN(card1Limit) && card1Limit >= 0) totalLimit += card1Limit;
if (!isNaN(card1Balance) && card1Balance >= 0) totalBalance += card1Balance;
if (!isNaN(card2Limit) && card2Limit >= 0) totalLimit += card2Limit;
if (!isNaN(card2Balance) && card2Balance >= 0) totalBalance += card2Balance;
if (!isNaN(card3Limit) && card3Limit >= 0) totalLimit += card3Limit;
if (!isNaN(card3Balance) && card3Balance >= 0) totalBalance += card3Balance;
if (totalLimit > 0) {
utilizationRatio = (totalBalance / totalLimit) * 100;
} else if (totalBalance > 0 && totalLimit === 0) {
// If there's a balance but no limit, it's an undefined or extremely high utilization
utilizationRatio = Infinity; // Represent as a very high number or handle specifically
} else {
utilizationRatio = 0; // No limits, no balances, so 0% utilization
}
document.getElementById('totalLimitResult').innerText = '$' + totalLimit.toFixed(2);
document.getElementById('totalBalanceResult').innerText = '$' + totalBalance.toFixed(2);
if (utilizationRatio === Infinity) {
document.getElementById('utilizationRatioResult').innerText = 'N/A (No Credit Limit)';
advice = "You have a balance but no reported credit limit. This can negatively impact your score. Contact your card issuer.";
adviceElement.className = 'warning';
} else {
document.getElementById('utilizationRatioResult').innerText = utilizationRatio.toFixed(2) + '%';
if (utilizationRatio = 10 && utilizationRatio 30 && utilizationRatio <= 50) {
advice = "Fair. Your credit utilization is getting a bit high. Consider paying down balances to improve your score.";
adviceElement.className = 'warning';
} else {
advice = "Poor. Your credit utilization is very high. This can significantly hurt your credit score. Focus on reducing your balances.";
adviceElement.className = 'danger';
}
}
document.getElementById('utilizationAdvice').innerText = advice;
}
// Calculate on page load with default values
window.onload = calculateUtilization;
Understanding Credit Utilization
Credit utilization, also known as your credit utilization ratio, is a crucial factor in determining your credit score. It represents the amount of credit you're currently using compared to the total amount of credit available to you. Lenders and credit bureaus view this ratio as an indicator of how reliant you are on borrowed money and how well you manage your credit.
How is Credit Utilization Calculated?
The calculation is straightforward:
Credit Utilization Ratio = (Total Current Balances / Total Credit Limits) × 100
For example, if you have a total of $10,000 in credit limits across all your cards and your total current balances amount to $3,000, your credit utilization ratio would be ($3,000 / $10,000) × 100 = 30%.
Why is it Important?
- Impact on Credit Score: Credit utilization accounts for approximately 30% of your FICO credit score, making it the second most important factor after payment history. A high utilization ratio signals to lenders that you might be a higher risk, potentially leading to lower credit scores.
- Lending Decisions: Lenders use this ratio to assess your creditworthiness when you apply for new loans, credit cards, or even mortgages. A lower ratio generally makes you a more attractive borrower.
- Interest Rates: A good credit utilization ratio can help you qualify for better interest rates on loans and credit cards, saving you money over time.
What is a Good Credit Utilization Ratio?
While there's no single magic number, most financial experts recommend keeping your overall credit utilization ratio below 30%. A ratio below 10% is generally considered excellent and can significantly boost your credit score. Going above 30% can start to negatively impact your score, and ratios above 50% are often seen as a red flag.
It's also important to consider individual card utilization. Even if your overall ratio is low, having one card maxed out could still be viewed negatively.
Tips to Improve or Maintain a Healthy Credit Utilization Ratio:
- Pay Down Balances: The most direct way to lower your utilization is to pay off your credit card balances, especially before your statement closing date.
- Pay Multiple Times a Month: Instead of waiting for the statement due date, make smaller payments throughout the month to keep your reported balance low.
- Increase Credit Limits: If you have a good payment history, you can request a credit limit increase from your card issuer. This increases your total available credit without increasing your balance, thus lowering your ratio. Be cautious not to spend more just because you have more credit.
- Avoid Closing Old Accounts: Closing an old credit card account reduces your total available credit, which can instantly increase your utilization ratio, even if your balances remain the same.
- Open New Accounts (Carefully): Opening a new credit card can increase your total available credit, but it also involves a hard inquiry on your credit report, which can temporarily ding your score. Use this strategy judiciously and only if you can manage the new credit responsibly.
Monitoring your credit utilization regularly, as this calculator helps you do, is a vital step in maintaining a healthy financial profile and a strong credit score.