Credit Utilization
The percentage of your available credit limit that you are currently using.
Calculated as total revolving balances divided by total revolving credit limits. The widely cited rule is to keep utilization under 30%, but FICO data shows people with scores in the 800s typically run under 10%. Utilization is calculated per card and overall, so maxing one card hurts even if your overall ratio is fine. The balance reported to bureaus is usually your statement balance, not what you owe today, so paying before the statement closes can lower the figure that hits your report.
Related
Inside Finlo
A 60-second lesson that puts this term in context, alongside the others, lives inside the Finlo app.