Your credit utilization is the amount of credit you've used out of the total amount available to you and makes up 30% of your credit score. The lower your credit utilization, the better! You can figure out your credit card utilization by dividing your total credit card balance by your total credit card limit. For example, let's say the balance on your credit card is $500 and your credit limit is $1,000. Your credit utilization for that credit card is 50%. Financial institutions like to see that number at less than 30%.
Learn more about credit utilization on the blog.