When you have a credit card, the credit limit dictates the maximum balance you can have on the credit card. There’s also a current balance, which shows how much you’ve charged to the credit card as of that moment.
Though credit card companies always show your balance, they don’t always show your credit utilization rate on your statement. The good news is that it’s easy to calculate it on your own! The credit utilization rate is simply the current balance divided by the total credit limit. This is also known as the credit utilization ratio or the credit utilization percentage.
You can also calculate the credit utilization rate among all your lines of credit. Just add up the current balance on all your accounts and divide that sum by the total credit limit for all the cards. This will show your overall credit utilization rate.