Utilisation: how full is the card?
Lesson 3 of 12 in our free Credit Cards: Tool, Not Trap guide: a 5-minute money game with the key points below.
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Questions you'll answer
Mo has a £1,500 limit and his statement shows £1,200. What's his utilisation?
Mo pays in full every month, but his balance hits £1,400 of £1,500 before each statement. What usually gets reported?
Quick facts
- £300 used of a £2,000 limit → Under 30%. 15%.
- £900 used of a £1,000 limit → Over 70%. 90%.
- £450 used of a £1,500 limit → 30% to 70%. Exactly 30%.
- £1,000 used of a £2,000 limit → 30% to 70%. 50%.
- £50 used of a £1,000 limit → Under 30%. 5%.
- £1,800 used of a £2,000 limit → Over 70%. 90%.
- Myth: “Closing an old, unused card always helps your credit.” — It can raise your utilisation, because your total available limit shrinks.
- Fact: “Utilisation looks at how much of your limit you use, not just the balance.” — £500 on a £5,000 limit (10%) reads very differently from £500 on a £600 limit (83%).
- Fact: “A bigger limit only helps if you don't spend more because of it.” — A bigger limit with a bigger balance is the same story with more zeros.