credit utilization ratio

[ kred-it yoot-l-i-zey-shuhn rey-shoh, rey-shee-oh ]
/ ˈkrɛd ɪt yut lˌɪˈzeɪ ʃən ˌreɪ ʃoʊ, ˌreɪ ʃi oʊ /

noun Finance.

the total amount of outstanding charges on a credit card compared to the card’s spending limit, expressed as a percentage calculated by dividing the balance due by the spending limit:A high credit utilization ratio, especially above 50%, often indicates that a cardholder may be spending beyond their financial means.

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Origin of credit utilization ratio

First recorded in 1985–90

Words nearby credit utilization ratio

Dictionary.com Unabridged Based on the Random House Unabridged Dictionary, © Random House, Inc. 2020