Credit Utilization

« Back to Glossary Index

Credit utilization is the percentage of available credit that you have utilized.

For example, if you have a credit card with a $10,000 limit and a line of credit with a $5,000 limit, and you have borrowed a total of $7,500 from both combined, then your overall credit utilization is 50% ($7,500 / $15,000).

Ongoing high credit utilization (e.g., above 70-80%) will weigh down your credit score.

« Back to Glossary Index