Credit Utilization Rate

Business, Legal & Accounting Glossary

  1. Home
  2. Glossary
  3. Define: Credit Utilization Rate

Definition: Credit Utilization Rate

Credit Utilization Rate
Cite Term
Sources

Full Definition of Credit Utilization Rate

An important factor used by credit bureaus in the formulation of credit scores calculated by dividing the total of all outstanding balances by total of all credit limits for each account. Generally, a higher utilization rate will result in a lower credit score. Additionally, a high utilization rate for any one credit account may also lower the score.

Cite Term

To help you cite our definitions in your bibliography, here is the proper citation layout for the three major formatting styles, with all of the relevant information filled in.

Page URL
https://payrollheaven.com/define/credit-utilization-rate/
Modern Language Association (MLA):
Credit Utilization Rate. PayrollHeaven.com. Payroll & Accounting Heaven Ltd.
April 20, 2024 https://payrollheaven.com/define/credit-utilization-rate/.
Chicago Manual of Style (CMS):
Credit Utilization Rate. PayrollHeaven.com. Payroll & Accounting Heaven Ltd.
https://payrollheaven.com/define/credit-utilization-rate/ (accessed: April 20, 2024).
American Psychological Association (APA):
Credit Utilization Rate. PayrollHeaven.com. Retrieved April 20, 2024
, from PayrollHeaven.com website: https://payrollheaven.com/define/credit-utilization-rate/

Definition Sources

Definitions for Credit Utilization Rate are sourced/syndicated and enhanced from:

  • A Dictionary of Economics (Oxford Quick Reference)
  • Oxford Dictionary Of Accounting
  • Oxford Dictionary Of Business & Management

This glossary post was last updated: 20th November, 2021 | 0 Views.