# What is credit utilisation ratio?

> Quick answer · Last updated 4 July 2026

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## In short

The percentage of your available credit you are using — total balances divided by total limits. Keeping utilisation below 30% on each card and overall usually helps credit scores; maxed-out cards hurt even if you pay on time.

Paying in full each month still shows utilisation on your statement date — some people pay down before reporting date to lower the figure.

Increasing limits without spending more lowers utilisation — but avoid temptation to borrow more.

See credit utilisation explained guide.

## Related

- [Credit utilisation explained](https://moneyguide.org.uk/credit/credit-utilisation-explained/)
- [What is credit utilisation?](https://moneyguide.org.uk/answers/what-is-credit-utilisation/)
- [Balance transfer cards](https://moneyguide.org.uk/banking/balance-transfer-cards-explained/)

## Primary source

legislation.gov.uk/ukpga/1974/39

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Independent UK money guidance from [Money Guide](https://moneyguide.org.uk). Money Guide is not a financial adviser and does not currently earn commission on credit cards. This guide is educational information only — always check the issuer's own terms, eligibility checkers and fees before applying. 18+, subject to status. Credit is a commitment: only borrow what you can repay in full each month, because interest charges erase every reward on this page.