How is credit utilization calculated?

Divide the reported balance by the reported credit limit, then multiply by 100. Calculate both an overall ratio and a ratio for each revolving account.

Does one utilization percentage guarantee a credit-score result?

No. Scoring models and lender decisions vary, so no single percentage guarantees a particular score or approval outcome.

What information should I enter in the calculator?

Use the balance and credit limit shown for each revolving account. Results are estimates and depend on the accuracy and timing of the information entered.

Canadian credit utilization guide by Bremo

Understand your credit utilization before changing it

Credit utilization compares revolving balances with available limits. This guide shows the calculation, the two views worth checking, and how to test a scenario without promising a credit-score outcome.

Open the free utilization calculator

The calculation

Utilization = reported balance ÷ reported credit limit × 100

Example: a $750 balance divided by a $5,000 limit equals 15% utilization.

Use balances and limits from the same reporting period. A payment made today may not appear in information reported by a lender immediately.

Check two views

Overall utilization

Add the balances across revolving accounts, divide by their combined limits, and multiply by 100.

Per-account utilization

Repeat the calculation for each account. The overall ratio can hide one account carrying a much larger share of its limit.

Use the result as a scenario, not a promise

Verify every balance and limit before calculating.
Compare the overall result with each account’s result.
Test a different balance to understand the mathematical change.
Recheck after updated information is reported.

Bremo’s calculator is educational. It does not access a credit file, predict a score, recommend borrowing, or guarantee approval. Scoring models and lender decisions vary.

Frequently asked questions

Should installment loans be entered?

The calculator is designed for revolving accounts with reusable limits, such as credit cards or lines of credit. Installment loans follow a different balance structure.

Can a ratio be above 100%?

Mathematically, yes: a reported balance can exceed the reported limit. Confirm the source values if the result looks unexpected.

Is there one ideal percentage?

No single percentage guarantees a score or lending outcome. Treat the ratio as one piece of information and avoid decisions based on a promised threshold.