Definition: the amount of purchasing power you have, calculated as the total credit available divided by the total debt. Credit utilization is 30% of your credit score and is expressed as a percentage. Higher credit utilizations result in lower credit scores.
Example: credit available = $1000, total debt = $500, credit utilization = 50%
Example: credit available = $1000, total debt = $500, credit utilization = 50%
Also Known As: debt to credit ratio
