# How is credit-card utilization calculated when you have more than one card?

I know that your credit utilization affects your credit score, but I have a question about how exactly this is calculated. Suppose I have two credit cards:

• Card A has a credit limit of \$1000 and I’ve put \$30 on it.
• Card B has a credit limit of \$500 and I’ve put \$450 on it.

Credit utilization is the amount of credit you’ve used divided by the total amount of credit you have available. I see two obvious ways to calculate the overall credit utilization:

1. Take the total amount of credit used and divide it by the total amount of credit available.

In my example, this number would be (30+450)/(1000+500) = 32%.

2. Calculate the utilization for each card individually and average these numbers together.

In my example, this would be the average of 30/1000 and 450/500, which is 47%.

Which of these methods is used to determine the credit-utilization part of my credit score?

(I’m curious because one of my credit cards has a much higher credit limit than the others, but the lower-limit ones have better rewards. Assuming that my total spending remains fixed, I’m curious whether shifting this balance onto the lower-limit cards has any effect on my credit score.)

• `they take a wide view of your credit` I've noticed this as well, particularly with student loans. Do you happen to know how they judge your "limit" on those? – jonsca Feb 11 '14 at 19:26