Credit Utilization Ratio
See Credit Utilization. The percentage of your available revolving credit you're currently using. Calculated as total revolving balances divided by total revolving credit limits. Accounts for 30% of your FICO score.
Related guides
- Full credit & FICO® glossary
Browse all defined terms by category.
- Credit Utilization
The percentage of your available revolving credit (credit cards, lines of credit) that you're currently using. Calculated by dividing your total credit card balances by your total credit limits. Accounts for 30% of your FICO score. Lower is generally better; keeping utilization below 30% is a common guideline, while below 10% is ideal.
- Revolving Credit
A type of credit where you can borrow repeatedly up to a set limit, repay, and borrow again. Credit cards and lines of credit are revolving. Your credit utilization ratio — a major FICO factor — only applies to revolving credit accounts.
Frequently Asked Questions About Credit Utilization Ratio
What does Credit Utilization Ratio mean?
See Credit Utilization. The percentage of your available revolving credit you're currently using. Calculated as total revolving balances divided by total revolving credit limits. Accounts for 30% of your FICO score.
Is Credit Utilization Ratio important for my FICO® score?
Yes — Credit Utilization Ratio is one of the five factors that directly determine your FICO® score. Understanding it helps you make better decisions about your credit.