Credit utilization refers to the amount of available credit that you are currently using. It is usually expressed as a percentage and shows how much of your credit limit you have used. For example, if you have a credit card with a limit of $1,000 and have spent $500, your
credit utilization is 50%. It is an important factor considered by lenders to assess your creditworthiness. A lower
credit utilization rate is generally better as it indicates responsible credit management.
Full definition