Credit Card Glossary

Puzzled by credit card jargon? Browse the glossary for the definitions of common and confusing credit card terms.

Credit utilization ratio

The amount of money you've borrowed on a credit account compared to the credit limit of that account. If your credit limit is $5,000 and you have charged $500, your credit utilization ratio is 10 percent. Keeping your credit utilization ratio at less than 25 percent to 30 percent can help boost your credit score.