Finance & Banking

Utilization

ˌjuːtələˈzeɪʃn

noun

What does Utilization mean?

The percentage of credit limit you're using.

Example sentence

"High utilization lowers your credit score."

American usage tip

Under 10% is ideal for top scores.

Related Finance & Banking words

W-2
The annual wage form employers send for taxes.
IRA
Individual Retirement Account.
Direct deposit
Salary paid electronically into your account.
Venmo
A popular peer-to-peer payment app.
401(k)
An employer retirement account with tax benefits.
Credit score
A number (300-850) showing how reliable a borrower you are.
Index fund
A fund tracking a whole market index.
Cashback
A percentage of spending returned to you.

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