Definition · Glossary

Credit utilisation

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In plain English

Credit utilisation is the proportion of your available credit limit that you are currently using. High utilisation — typically above 30–50% — can negatively affect your credit score.

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Example

If you have a £3,000 credit card limit and a £1,500 balance, your credit utilisation is 50%.

Don't get caught out

Common misunderstandings

Using less of your available credit can improve your score, even if you always pay in full.
Closing a credit card can increase your utilisation percentage if you still have balances on other cards.