top of page
Credit Utilization Ratio

Credit Utilization Ratio

The credit utilization ratio is the percentage of a borrower’s total available credit that is currently being used. The credit utilization ratio is a component used by credit reporting agencies in calculating a borrower’s credit score.

Lowering your credit utilization ratio can help you improve your credit score. If you are trying to improve your credit score, avoid closing a credit card. It is better for your credit utilization ratio to have a low ratio than a closed card.

bottom of page