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Definition of 'Credit Utilization Rate'
An input used in determining a person's credit score. It is the amount of outstanding balances on all credit cards divided by the sum of each card's limit, and it's expressed as a percentage. For example, if you have a $2,000 balance on one card and a $3,000 balance on another, and each card has a $5,000 limit, your credit utilization rate would be 50%.
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Investopedia explains 'Credit Utilization Rate'
Credit issuers like to see a credit utilization rate of approximately 35% or less. Therefore, it is sometimes not in your favor to close credit cards without balances, or reduce your credit card limit. Just shifting balances from an existing card to another will not change the credit utilization rate, as it looks at the total amount of debt outstanding divided by your total credit card limits. In this case, you would be better off paying down debt as opposed to shifting from one of your credit cards to another.
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Search results for 'Credit Utilization Rate'
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http://www.investopedia.com/articles/pf/09/combining-credit-cards.asp
... The credit report also reflects the credit utilization rate - your balances
divided by your credit limits. Your credit utilization ...
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http://financialedge.investopedia.com/financial-edge/1111/3-Easy-Ways-To-Improve-Your-Credit-Score.aspx
... This portion of your score looks at how much credit you use overall your total
credit utilization rate across all of your credit accounts and it also ...
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http://financialedge.investopedia.com/financial-edge/0212/4-Common-Credit-Card-Misconceptions.aspx
... reducing your debt increases your credit utilization ratio, which ... The Bottom Line
Credit cards are used widely ... Rate this Article: Your Rating: Overall Rating ...
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http://financialedge.investopedia.com/financial-edge/0212/6-Benefits-To-Increasing-Your-Credit-Limit.aspx
... Lowers Your Credit Utilization and Increases Your Credit Score The FICO ... of getting
approved for a credit card, car ... of getting a lower interest rate, since your ...
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http://financialedge.investopedia.com/financial-edge/1111/What-Credit-Score-Should-You-Have.aspx
... for a 30 year fixed-rate mortgage with 3.8% annual percentage rate (APR). ... of debt;
and the 60+ age group had the lowest average credit utilization (used the ...
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http://financialedge.investopedia.com/financial-edge/0711/How-Many-Credit-Cards-Should-You-Have.aspx
... cards, it becomes much easier to keep your debt utilization ratio low. ... this card
would have no annual fee, a high credit limit and a low interest rate. ...
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http://www.investopedia.com/articles/pf/08/close-credit-card.asp
... unpaid balance on a credit card with a high interest rate, closing the ... Redline.)
Balance/Limit Ratio Your balance/limit ratio, or credit utilization ratio, is ...
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http://www.investopedia.com/articles/pf/10/credit-score-factors.asp
... lenders that will check your credit score before deciding how much they are willing
to lend you and at what interest rate. ... Watch your credit utilization ratio. ...
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http://www.investopedia.com/articles/pf/09/credit-card-arbitrage.asp
... card company can immediately change the terms of your loan and charge a much higher
interest rate - think 19 ... Higher utilization ratio = lower credit score ...
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http://stocks.investopedia.com/stock-analysis/2011/Noble-Optimistic-On-Recovery-NE-DO-RIG0728.aspx
... This utilization rate varied by type of rig, with the company's semi-submersible
fleet at 85% utilization, while jack up rigs were reported at a 71 ...
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