The proportion of your limit you use
Credit utilisation usually describes your credit card balance as a percentage of your credit limit. For several cards, overall utilisation uses the combined balances divided by the combined limits.
This calculator uses the figures you enter. A report may show a different balance because lenders report on their own schedules.
| Balances | Limits | Utilisation |
|---|---|---|
| £500 | £2,000 | 25% |
| £500 + £250 | £2,000 + £1,000 | 25% |
| £1,800 | £2,000 | 90% |
| £1,800 + £0 | £2,000 + £3,000 | 36% |
Sources:Experian: credit scores ↗
One factor, not the whole story
Using a large share of available credit can be considered in credit scoring and lending assessments. Lower utilisation is not a promise of a better score or an accepted application.
Payment history, recent applications and other information matter too. There is no universal percentage that guarantees a lender decision.
Consider affordability first
- Stay within your limit and meet payments on time.
- Do not raise a limit or open another account just to change a percentage.
- Where affordable, paying down balances reduces the debt you owe.
- If repayments are becoming difficult, seek free debt advice rather than focusing on a score.