What is a...

Credit Utilisation Rate

Credit Utilisation Rate is your usage of a credit account compared to the credit limit, expressed as a percentage. For example, if you have credit card with a limit of £1,000 and you have borrowed £100, your Credit Utilisation Rate would be 10%.

How can I check my Credit Utilisation Rate?

If your lenders are sharing your credit account information with the Credit Reference Agencies, you’ll be able to see your current balance, headroom, and credit limit on your Credit Report, which are the main credit utilisation factors.

Our Multi Agency Credit Report gives you access to your information from Equifax, Experian, TransUnion, and Crediva all in one place, ensuring you don’t miss anything important.

You can try checkmyfile free for 30 days and then just £14.99 per month. Cancel online anytime.

Can a high Credit Utilisation Rate affect my applications?

Typically if your credit utilisation is high, it could be seen by lenders as a sign that you may be experiencing financial difficulty and, as such, you may pose a higher risk of defaulting to lenders, potentially making it more difficult to obtain further credit.

It is generally recommended to keep your credit utilisation at around 30%-40% as this shows lenders you have an ‘appetite’ for credit and would be likely to use any new credit agreements applied for, but do not rely on them excessively.

If your credit utilisation rate is low, existing card providers may take this into account and adjust your credit limits accordingly if they feel that your current usage may indicate a risk of spending a large amount in one quick burst and then vanishing.

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