If the total balance due on three credit cards is $6,000 and the limit is $15,000, what percentage of credit is being used?

To determine the percentage of credit being utilized, you can use the formula:

Percentage of credit used = (Total balance due / Credit limit) × 100

In this scenario, the total balance due on the three credit cards is $6,000 and the total credit limit is $15,000. Plugging these values into the formula gives:

Percentage of credit used = ($6,000 / $15,000) × 100
= 0.4 × 100
= 40%

This calculation illustrates that 40% of the available credit is currently being utilized. This figure is significant for credit management, as it helps in assessing creditworthiness and maintaining a healthy credit score. Keeping credit utilization below 30% is often recommended for optimal credit scores, and knowing that 40% is in use indicates that it's slightly above this threshold, warranting attention to spending habits on credit cards.