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

Vesting
Earning full ownership of employer contributions over time.
IRA
Individual Retirement Account.
Brokerage
An account for buying stocks and funds.
Net worth
Total assets minus total debts.
Venmo
A popular peer-to-peer payment app.
Zelle
A free instant bank-to-bank payment app.
Cashback
A percentage of spending returned to you.
Refund
Money returned when you overpaid taxes.

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