Utilization ratio is used in the calculation of credit scores. It compares the amount of credit being used to the total credit available to the borrower. Having a low ratio -- in other words, not much debt but a lot of available credit -- is good for your credit score. Also known as a balance-to-limit ratio.

In contrast to efficiency, which compares the energy input with the useful energy over a short period of time, both are related for a long period of time for the utilization ratio. Thus, an oil-fired [..]

The utilization ratio is important in determining ones credit score. It will compare the amount of credit an individual is using with how much is available to the customer. It is better for an individual to have a low utilization ratio because that means that there is lower debt obligation and more available credit.