credit utilization rate


An important factor used by credit bureaus in the formulation of credit scores calculated by dividing the total of all outstanding balances by total of all credit limits for each account. Generally, a higher utilization rate will result in a lower credit score. Additionally, a high utilization rate for any one credit account may also lower the score.
Browse Definitions by Letter: # A B C D E F G H I J K L M N O P Q R S T U V W X Y Z
credit union shares credit watch