Def: Credit utilization is the ratio of your credit card balances to credit limits. For example, if your balance is $300 and your credit limit is $1,000, then your credit utilization for that credit card is 30%.
It is important to maintain good credit utilization because this shows your responsibility with credit and will increase your chances of obtaining credit, limit increases, and higher scores. A higher CU (over 30%) can adversely affect your credit score, history, and chances for increases and extended credit.
Want to learn more on how to maintain a great CU, increase your SCORE, and obtain positive CREDIT and other important factors regarding your credit report and score?