Credit utilisation
Credit scores & reportsThe percentage of your available credit that you are currently using.
Overview
Utilisation is calculated by dividing your balances by your credit limits. High utilisation can signal higher risk to lenders.
Lower utilisation is generally better for your credit profile, especially if you keep balances low across multiple accounts.
Why it matters
- It is a major factor in credit scoring.
- High utilisation can reduce your score even if you pay on time.
- Lower utilisation can improve eligibility for better rates.
Quick tips
- Aim to keep balances low relative to your limits.
- Spreading spend across accounts can lower individual utilisation.
- Paying before your statement date can reduce reported balances.
FAQs
Is 0% utilisation best?
Not always. Some activity with on-time repayment can help build history, but high utilisation can be harmful.
Do all cards count toward utilisation?
Most revolving credit accounts count, but reporting can vary by lender and agency.
Related terms
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