To calculate the Credit Utilization Ratio (CU):
\[ CU = \frac{TB}{TCL} \times 100 \]
Where:
A credit utilization ratio measures the total percentage or proportion of the total available credit limit that a person uses at any given time.
Let's assume the following values:
Using the formula:
\[ CU = \frac{2000}{10000} \times 100 = 20 \]
The credit utilization ratio is 20%.
Let's assume the following values:
Using the formula:
\[ CU = \frac{5000}{20000} \times 100 = 25 \]
The credit utilization ratio is 25%.
