Credit utilization
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Definition
Credit utilization is the share of available revolving credit a consumer is already using. Lenders and scoring models may look at it as one picture of current credit use.
In plain English
If a credit card has a limit and a balance, utilization is how much of that limit is in use. Mortgage underwriting may look at that picture along with the credit report. This page does not name a preferred ratio or a scoring formula.
Technical definition
Fannie Mae’s consumer glossary includes a credit utilization ratio heading. That is the PRIMARY consumer evidence. It is not a FICO formula page.
Why it matters
Readers who pay down revolving balances before a mortgage application are usually talking about this figure, not about mortgage LTV.
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Source reviewedSeptember 4, 2026
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