Credit Utilisation: The Number That Quietly Moves Your Score
After payment history, this is the biggest credit-score lever — and the easiest to fix.
What utilisation means
Utilisation is your credit card balance divided by your credit limit, expressed as a percentage. It applies both per-card and across all cards combined. It's the second-biggest scoring factor after payment history.
The thresholds that matter
Scoring models reward staying under 30% utilisation, reward more strongly under 10%, and reward most for 1–9% (full 0% can slightly hurt because it suggests inactivity).
Why it moves so fast
Unlike account age or payment history, utilisation updates every billing cycle. Pay down balances before the statement closes and your score can improve in 30–60 days.
How to lower utilisation quickly
Three options: pay balances down, request a credit limit increase (the denominator grows), or make a mid-month payment before the statement closes (lower reported balance). The mid-month trick is the fastest.
Don't close old cards
Closing a card reduces total available credit, which raises utilisation across remaining cards. Keep old cards open with a small recurring charge and autopay in full.
Frequently asked questions
Does paying in full hurt my score?
No — paying in full is the right behaviour. Just be aware utilisation reflects the statement balance, not the day-of balance.
Does utilisation matter on a charge card?
Charge cards (no preset limit) are usually excluded from utilisation calculations.
What's the 'all-zero except one' trick?
Some advisors recommend showing one small balance and zero on others. The actual score benefit is small; full payment is fine.