Utilisation threshold
Credit scores & reportsA level of credit usage where scores may begin to drop.
Overview
Thresholds are not fixed, but very high utilisation is generally negative.
Lower usage is usually safer for scoring.
Why it matters
- It helps set safe spending targets.
- It explains why scores drop when balances rise.
- It guides credit management.
FAQs
Is there an exact utilisation threshold?
No. It varies by lender and scoring model.
Can I recover quickly after high utilisation?
Yes. Paying down balances can improve utilisation quickly.
Related terms
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