Module 1, Session 7: Balances, Limits, and Credit Utilization

Learn how account balances, credit limits, and credit utilization work together within your credit profile. This session explains the difference between a current balance, statement balance, minimum payment, available credit, and reported balance. You will also learn how utilization is calculated for individual revolving accounts and across your total available revolving credit—and why the balance shown on a credit report may not match what you owe today.

Through practical examples, guided calculations, and professionally designed worksheets, you will identify statement-closing and payment-due dates, calculate utilization percentages, compare balances across your credit reports, and explore responsible ways to manage revolving debt. By the end of the session, you will have a clearer system for monitoring reported balances, protecting available credit, planning payments, and making informed decisions without relying on utilization myths or promised score results.